Edmond de Rothschild Asset Management has been active in value investing for more than 15 years and as such has genuine expertise in this field. It aims at generating outperformance in various phases of economic cycles by focusing on stocks that are discounted to their sector (relative value) and make opportunistic investments in socalled turnaround stocks (deep value) which offer strong rerating potential but are also riskier.
How relevant is a global value approach today?
A global approach is attractive as each geographical zone moves in asynchronous economic cycles. This represents a considerable advantage as it helps multiply investment opportunities while diversifying risk. For example, US growth is continuing apace, underpinned by structural growth engines like the property market recovery and an acceleration in investment while the European situation is still stabilising or showing signs of modest growth. In emerging countries, the picture is more contrasted and we expect markets there to remain highly volatile. This is why our investment choices, which are based on a bottom-up approach, concern stocks with the best risk/return profile in today’s global environment.
Read the full white paper at the link beneath Related Files.
