Find a business by adopting the approach of one who seeks a wife by being active, interested and open, but not pressed. This is according to Warren Buffett one of the keys to the success of the investor "value". And since the first quarter of 2003, it is clear that the unions were many and happy given high performance (see graphic) managers "value". What enthusiasm of investors tend to rediscover this management cautious, conservative and defensive, after chahutées periods on the markets, they traverse also generally rather better than the traditional actions (read below) funds.
Yet, this type of management is ancient, with pioneers such as American Corporation Templeton and his famous Chairman Sir John Marks Templeton (see box). In France, this strategy, apparition there is 20 years, is developed by some companies such as JRC Actions or metropolis management. Among major asset managers, this style of management, marginal, is primarily intended for institutional investors and private banking clients. For the general public, this approach still mysterious rest and too complicated, while it is still guided by common sense.
Tracking the undervaluation
Its principles "The style"value"is to find two to three valuation by sector that are stable over time to determine the industrial value of a company and detect possible catalysts of change in stock status, internal or external, and criteria that will trigger a reduction in observed undervaluation," explains Marc Renaud, Director General of JRC Actions. This undervaluation can be detected using indicators such as course reported to the accounting value of the company, the economic value to sales or employee capital... Each manager prefers and weighs the importance of different indices, based on his experience.
Once identified, sous-valorisées enterprises and the reasons that explain, "value" Manager calculates the industrial value of the company. This includes interviews with the management of businesses, who generally appreciates this type of managers: focused as they on the strategic orientations, rather immune modes, patient, faithful, with industrial fiber marked, he told them also sometimes this which they cease to be satisfied, namely, that their course does not reflect the economic value, or in any case never enough...
This management is based also on a few strong assumptions: the intrinsic value of a company and its stock market course are two very different realities, because it integrates psychology of crowd the market regularly committing excesses, the competitive positions of companies are not a definitive acquis. Purchase opportunities related to the undervaluation exist in all sectors.
"Are the managers who are"value", not the titles, including the stock status can change radically and in a relatively short period of time as when the Internet bubble burst," insisted Marc Renaud. The values of high technology were so severe so during this period they have interest managers "value". And, even though "Manager"value"is by nature skeptical and conservative, for example admitting its inability generally into the process of upgrading the rapid developments in technology," still noted Marc Renaud.
Appreciate the multi-manager
The "value" style has variations that are schools. The "return" approach more defensive that the "value" traditional style, is to position itself on securities with strong dividends. The "contrarian", that of JRC Actions, style is aims to take advantage of the excesses of the market as to the increase. "Deep value" style can hold, his securities declassified for a long enough time... what makes customers nervous if performance does not meet for a long time. All these adaptations are especially useful to multi-manager and Fund of funds, their combination and portfolio construction activity. "We remain always in the background of portfolio minimum exposure to the"value"Fund, explains Roland Lescure, Deputy General Director of Natexis Asset Management. This allows us to be exposed to protective management by nature, having regard in particular the sectoral bias of this type of Fund.