Investment Strategies
Deploying patient capital to build generational wealth
Why Choose Us?
Investment Strategies
For investors and advisors who want to do more than go with the flow of large passive funds and other widely held vehicles, value investing provides a differentiated option that can be used broadly or as an effective bolt-on strategy, depending on the specific objectives and investment profile.
Total Return Value Strategy
Based on value-oriented investment principles that view equity securities as fractional ownership interests in operating enterprises.
Concentrated Equity Value Strategy
Based on value-oriented investment principles that view equity securities as fractional ownership interests in operating enterprises.
Focused Fixed Income Value Strategy
Based on value-oriented investment principles that view equity securities as fractional ownership interests in operating enterprises.
Investment Discipline
Our investment discipline is the manifestation of our investment philosophy, and describes how we approach investing in equity and debt securities. Although our analytical processes are similar, each of equity and debt requires unique consideration of an owner’s rights and claims.
Equity
Fractional ownership interest in an operating business; we evaluate as perspective of owners of the entire enterprise.
Businesses have value insofar as they generate cash flows or own assets that can be monetized for the benefit of the business’s owners.
Analytical process marries qualitative and quantitative considerations, and valuation is based on a methodology consistent with a business’s economic characteristics.
Debt
Contractual claims on the cash flows and/or assets of a business.
Analytical process focuses on a company’s leverage and interest coverage, with additional consideration paid to the durability of cash flows, the value and marketability of a company’s assets, and management’s approach to controlling leverage.
Bond indentures and the rights and recourse available to bondholders are examined.
What We Believe
Investment Philosophy
We attribute market inefficiencies to many factors, including the various (often short-term) investment horizons of investors. We take advantage of short-term market sentiment to make long-term investments. Six core tenets constitute GVIC’s investment philosophy. These principles color our discipline, process, and analytical thinking.
Short-term Market Inefficiencies Create Opportunity
We believe that short-term marketing pricing can be inefficient. We attribute discrepancies between price and intrinsic value to factors that are transient or misunderstood by market participants, and we expect price to align with intrinsic value in the long-term. We seek to arbitrage these opportunities by identifying securities where there is a severe dislocation between price and intrinsic value.
A Long-Term Horizon is Critical to Consistent Long-Term Performance
Patience is rewarded as price and intrinsic value can take time to align. While we are cognizant of “value traps,” we also realize that value-creating initiatives bear fruit over periods measured in years.
Rigorous Fundamental Analysis Based on Value-Oriented Investment Principles Underpins Our Process
A thorough understanding of a company’s financial statements, achieved through a disciplined approach to quantitative analysis, is a critical foundation upon which the wholistic understanding of an investment’s merits is built.
People Run Businesses
While quantitative analysis provides a framework for valuation, qualitative considerations are equally important. We place great weight on understanding the people in charge of operating the businesses in which we invest, as well as understanding other non-quantitative factors that could impact an issuer’s financial performance.
Capital Should be Concentrated in a Limited Number of High-Conviction Investments
Our superior understanding of the investments included in client portfolios represents a significant information advantage. Therefore, we aspire to construct portfolios consisting of a small number of high-conviction investments that allows us to devote an outsized amount of time to understanding and enabling the determinants of long-term value realization.
Operational Engagement Can Catalyze Value Creation
If the financial performance of an investment falls short of our expectations, we can employ several strategies to catalyze the realization of an investment’s intrinsic value.
Building Blocks
Take a listen as Global Value Investment Corporation CEO and President JP Geygan walks through the primary building blocks of every business to drive value.
Investment Process
An unconstrained investment mandate allows us to search for potential investments across market capitalization levels, industries, and geographies.
Broad criteria quickly narrow a large investable universe. More specific considerations cause many ideas to be excluded early in the analytical process.
Historical financial data is aggregated to form a basis for understanding the economic characteristics of a potential investment. Our understanding is supplemented with a variety of nonquantifiable inputs.
Investments are only made upon unanimous consent of the investment team. Firm associates are encouraged to invest in the same securities included in client accounts.
Investment analysis is a continuous process, and we constantly challenge our investment thesis and valuation assumptions. We sell when an investment reaches our appraised value, or the investment thesis breaks down.
Stay In The Know
Expert Insights
Read the latest market commentary and thought leadership from the GVIC experts. Visit our blog to stay up to date on the latest market trends and value investing insights from our GVIC team.
Investment Roundtable: Powering Value Investing Through Active Engagement
Staying ahead of the performance curve while traversing today’s cookie-cutter investment landscape requires more than passive investing and intermittent engagement. Doing better than the market necessarily calls for doing something different. However, our industry’s...
Bridging the Value Gap: Powering Value Investing through Active Engagement
Staying ahead of the performance curve while traversing today’s cookie-cutter investment landscape requires more than passive investing and intermittent engagement. Doing better than the market necessarily calls for doing something different. However, our industry’s...
Value Investing: Swim Against the Current in Today’s Sea of Sameness
The financial services landscape has been reshaped over the past decade by a pronounced shift from active investment strategies to passive investment vehicles, particularly in mutual funds and index funds. As documented by recent CNBC coverage, passive investing has...
Recent Events
In The News
Stay up to date on the work that GVIC is doing in the industry. Visit our news section to read the latest press releases, economic summaries, and quarterly updates from your favorite GVIC experts.
Harper & Hodge Wealth Management Selects Global Value Investment Corporation to Provide Investment Management Services for Clients
Pittsburgh, PA, March 26, 2024 // Harper & Hodge Wealth Management (Harper & Hodge) has engaged Global Value Investment Corporation (GVIC) to provide investment management services for individuals, business owners, trusts, and estates. The new relationship...
Q&A: New York Community Bancorp Inc. Earnings Release
On January 31, 2024, New York Community Bancorp, Inc. (NYSE: NYCB) (“NYCB”) announced its earnings for the fourth quarter of 2023 and gave an update on recent developments at the company. NYCB’s press release can be found here. There was an immediate negative reaction to the earnings release amongst market participants. On January 31, the company’s common stock closed at $6.47 per share after closing the previous day at $10.38 per share (a...
Q&A: Rocky Mountain Chocolate Factory, Inc. CEO Change
On January 29, 2024, Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) (“Rocky Mountain” or the “Company”) announced a CEO transition as part of the Company’s ongoing turnaround efforts. A link to the Company’s press release can be found here. To get further clarity on the appointment, we sat down with Global Value Investment Corporation’s (“GVIC”) Vice President of Investment Research, Malcolm “Mac” MacLaren.What happened?Yesterday...