Value Investing Nuggets – Value Investor Insight Newsletter – March 2017

The Acquirer's Multiple
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Value Investing Nuggets – Value Investor Insight Newsletter – March 2017
<a href="https://pixabay.com/users/PIX1861/">PIX1861</a> / Pixabay

One of the best resources for value investors are the Value Investor Insight Newsletters. The VII newsletter is a value investment publication full of value investing nuggets and interviews with some of the best value investing firms. The newsletter was created by money manager Whitney Tilson and media executive John Heins.

The most recent edition includes:

Investor Insight: Causeway Capital.

Abacab Fund Sees Mispricing In Options As Black-Scholes Has Become “Inadequate”

Abacab Asset Management's flagship investment fund, the Abacab Fund, had a "very strong" 2020, returning 25.9% net, that's according to a copy of the firm's year-end letter to investors, which ValueWalk has been able to review. Commenting on the investment environment last year, the fund manager noted that, due to the accelerated adoption of many Read More


Harry Hartford and Conor Muldoon of Causeway Capital Management describe where around the globe they’re seeing unwarranted differences in valuation, how they risk-adjust their return expectations, where they’re investing in their firm’s capabilities, and what they think the market is missing in Volkswagen, UniCredit, ArcelorMittal and Cobham.

Investor Insight: ADW Capital

ADW Capital’s Adam Wyden explains how he believes he differentiates himself from other investors, how growing up in a political household has impacted his investing style, why he significantly concentrates his investment bets, how he combats hubris, and why he sees mispriced upside in Imvescor Restaurant Group, Fiat Chrysler, Ferrari and EnviroStar.

Uncovering Risk: Chipotle The company’s situation might naturally attract the contrarian value investor. Should it?

Uncovering Value: Aerojet It lacks the pizazz of competitors, but the company may have much better things going for

Uncovering Value: GCI Finding unrecognized value in a company literally and figuratively “off the beaten path.”

You can download a copy of the newsletter here.

You can get your subscription to the Value Investor Insight Newsletters here.

This article was originally posted by Johnny Hopkins at The Acquirer’s Multiple.

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The Acquirer's Multiple
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The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates. It examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization. The Acquirer’s Multiple® is calculated as follows: Enterprise Value / Operating Earnings* It is based on the investment strategy described in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations, written by Tobias Carlisle, founder of acquirersmultiple.com. The Acquirer’s Multiple® differs from The Magic Formula® Earnings Yield because The Acquirer’s Multiple® uses operating earnings in place of EBIT. Operating earnings is constructed from the top of the income statement down, where EBIT is constructed from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries and sectors possible, and, by excluding special items–earnings that a company does not expect to recur in future years–ensures that these earnings are related only to operations. Similarly, The Acquirer’s Multiple® differs from the ordinary enterprise multiple because it uses operating earnings in place of EBITDA, which is also constructed from the bottom up. Tobias Carlisle is also the Chief Investment Officer of Carbon Beach Asset Management LLC. He's best known as the author of the well regarded Deep Value website Greenbackd, the book Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law. Articles written for Seeking Alpha are provided by the team of analysts at acquirersmultiple.com, home of The Acquirer's Multiple Deep Value Stock Screener. All metrics use trailing twelve month or most recent quarter data. * The screener uses the CRSP/Compustat merged database “OIADP” line item defined as “Operating Income After Depreciation.”

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