Concentrated Equity Value Strategy
Based on value-oriented investment principles that view equity securities as fractional ownership interests in operating enterprises
Allocation
Equity
Strategy Description
Securities included in the portfolio are often overlooked or undervalued by market participants for reasons we believe are temporary or unfounded. Rigorous financial statement analysis underpins the investment research process and provides critical context to understand qualitative analytical considerations. Catalysts for price appreciation are expected to be idiosyncratic; as such, we emphasize the analysis of an issuer’s long-term strategy, management quality, and capital allocation priorities. Regular dialogue with company senior management both before and throughout our investment ownership period is of particular importance. “Operational engagement” provides a distinct information advantage while allowing us to accelerate value-creation initiatives if necessary.
Portfolio Construction
Fully invested portfolios hold concentrated equity positions spanning market capitalization levels, economic sectors, and geographies. We have a long-term investment horizon to allow value creation initiatives to fully develop, and we generally hold positions for five years or longer. Trading occurs infrequently, and turnover is expected to be low.
Concentrated positions provide us the potential to profit from the ability to assume prudent idiosyncratic risk.
Long-term investment horizon accommodates the full development of value-creating strategies.
Operational engagement provides a distinct information advantage and may catalyze change when necessary.
GVIC Philosophy
Take a listen as Global Value Investment Corporation CEO and President JP Geygan walks through the six pillars that are foundational to GVIC’s active approach to investing.
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.
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.
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