Results for: Value Investing

The Sound Shore Fund outperformed in the first quarter of 2024, with its Investor and Institutional classes gaining 17.05% and 17.10%, respectively. These gains were significantly higher than the 8.99% advance of the Russell 1000 Value Index. The Fund’s strong returns were driven by a diverse portfolio, including holdings like Fidelity National Information Services, Flex, General Motors, Organon, and PACCAR. The Fund’s managers attribute their success to their contrarian investment process, which focuses on the adaptability and sustainability of company business models.

The financial sector is showing signs of strength, with rising expectations for a soft landing of the U.S. economy and improving consumer sentiment levels. This has created a favorable environment for financial stocks, making them attractive for investors seeking value, growth, or dividend income. This article takes a closer look at three financial stocks that could continue to perform well in the coming months: Citigroup (C), iShares Global Financials ETF (IXG), and Visa (V).

Oracle (NYSE: ORCL) is an AI and cloud computing specialist that has been largely overlooked by investors, offering a potential hidden gem for your portfolio. Its partnership with Palantir Technologies and significant investment in Japan make Oracle a compelling long-term opportunity.

Sega Sammy offers a compelling value proposition due to its strong franchises and recent underperformance. Despite challenges with underperforming titles from Creative Assembly, the company is addressing these issues and has seen success with recent releases such as Yakuza and Persona 3. With a favorable valuation compared to Nintendo and the potential for overperformance in Q4 results driven by Infinite Wealth and Persona 3, Sega Sammy presents a solid investment opportunity.

Based on the Old Faithful Geyser, which erupts regularly in Yellowstone National Park, this stock screening method identifies companies with strong financial performance and growth potential. Five selected stocks for the coming year include Lennar (homebuilding), Agco (agricultural equipment), Hibbett (sporting goods), Farmers & Merchants Bancorp (community banking), and Arrow Electronics (electronic parts distribution). Over the past 21 years, this screening method has yielded an average 12-month return of 20.5%, outperforming the S&P 500 Total Return Index.

Mondelez International, with its powerful brand portfolio, solid growth prospects, and reliable dividend, presents a compelling investment opportunity. Trading at a moderate discount to historical valuations, the stock has the potential to generate significant total returns in the coming years.

– The Third Avenue International Real Estate Value Fund (TAREX) generated a return of -1.70% for the first quarter of 2024, compared to -2.43% for its benchmark, the FTSE/EPRA NAREIT Global ex US Index.
– Over the past year, the Fund generated a return of +8.59% (after fees) versus +4.49% (before fees) for the Index.
– The Fund’s key investment themes include nearshoring growth, undersupplied residential markets in Western regions, and emerging self-storage platforms.
– Fund Management attended various conferences and met with senior executives from almost half of the Fund’s holdings. These updates supported the Fund’s investment underwriting.
– Netshoring tenant demand exceeds new supply in Mexico, with broad speculative new development restricted by infrastructure constraints and high financing costs. The Fund’s public holdings are in an advantageous position to benefit from high rental growth and attractive profits on new development.
– The supply-demand imbalance benefitting residential rents and home values in Western regions (Australia, Canada, Ireland, the UK, and Spain) is becoming politically problematic. This is likely to result in an elongated rental growth profile for the Fund’s investment in Boardwalk REIT over the coming years.
– Self-storage real estate outside the US remains immature, with low supply and potential for increased demand from higher penetration.

* For the three months ended March 31st, 2024, the Third Avenue Value Fund (the “Fund”) returned 8.58%, as compared to the MSCI World Index 2 , which returned 8.97% 1 .
* The Fund has returned 16.03% and 15.16% annualized over the trailing three- and five-year periods, respectively.
* The Fund’s strong performance in the first quarter was driven by copper mining companies Capstone Copper and Lundin Mining, as well as offshore energy services company Tidewater, Japanese gas flow-control and measurement company HORIBA, and Italian-headquartered global cement company Buzzi.
* The Fund also benefited from strong performances by Jardine Cycle & Carriage, Genting Singapore, Warrior Met Coal, Interfor Corp, and S4 Capital.
* The Fund’s investment philosophy is focused on buying significantly undervalued, well-financed businesses that are run by honest and competent people.
* The Fund typically holds about 30 positions at any given time and holds those positions for about 5 years, on average.
* Many of the Fund’s current holdings are experiencing large and growing shareholder distributions, including Vapores, Quiñenco, Buzzi, BMW, Old Republic, and Subsea7.
* The Fund recently initiated a new position in Harbour Energy plc, an independent oil and gas exploration and production company.

Eagle Bancorp, a small bank based in Maryland, has seen its fundamentals decline in recent years, raising concerns among investors. Despite trading at a cheap valuation, the bank’s continued decline in revenue and profits, coupled with rising debt and asset quality issues, make it a risky investment. Analysts expect a disappointing first-quarter performance, and the author recommends a neutral stance on the company.

Amidst geopolitical tensions and rising oil prices, the stock market has experienced a decline. While long-term investors should remain patient, there are opportunities for adept investors to make significant gains. History shows that markets recover from crises, and it’s important to be greedy when others are fearful. Some stocks that present potential value at current prices include Apple, Tesla, Nike, Gilead, and Visa.