By Hugo of V for Value
A recurring theme in US value investing has been the investment in big caps. In fact, we can see from the following screen that this category of stocks, which typically is the most expensive in terms of PE’s as a consequence of their business diversity, valuable assets and more stable cash flows and dividends, is now the cheapest one and a very good place to be invested in.
In the S&P500, home of the largest US companies, we can scout for the cheapest sectors. Three sectors in particular stand out, These sectors have historically rarely been so cheap: Health Care, Financial and Technology.
Since its inception in January 2012, the long book of the Voss Value Fund, Voss Capital's flagship offering, has substantially outperformed the market. The long/short equity fund has turned every $1 invested into an estimated $13.37. Over the same time frame, every $1 invested in the S&P 500 has become $3.66. Q1 2021 hedge fund Read More
In Europe, allow me to highlight my very battered home country, Portugal, and where value can be found right now. In fact, we are about to receive a bailout package from the IMF and the European Union as a consequence of years of wrongdoing from a chain of incompetent governments. However, the health of the corporate sector is still very strong and one can find truly great businesses with international diversification and trading at very low multiples. The following screens show the relative position of Portugal and the other Western Europe countries in terms of PE’s and PB’s.