Kiltearn’s value philosophy is focused on fundamental business valuation. Stock market values tend to fluctuate to a greater degree than underlying business values. This creates opportunities for a long term, bottom-up investor. Kiltearn’s focus is on building Intrinsic Value, defined as the assets, earnings, and dividends that a company delivers to the investor over time. Kiltearn seeks to maximize Intrinsic Value by focusing on the price paid to own a piece of a business and the quality of that business. Kiltearn focuses its resources on fundamental analysis of individual companies which are valued within the bottom quartile of the market. Through disciplined and methodical research, and regular and methodical rebalancing of the portfolio towards under-valued stocks, the long-term Intrinsic Value of the portfolio is compounded. Over time, we would expect the performance of the strategy to closely track its Intrinsic Value growth.
This philosophy is distinguished by four key features:
Our Philosophy
Our greatest opportunity lies in undervalued companies. These opportunities surface in different countries and industries at different times - so we search globally for value.
Global
Stock market values often fluctuate to a much greater degree than underlying business values. Experience teaches us that such volatility frequently creates opportunities for the patient, long-term investor.
Long-term
Kiltearn focuses its resources on the bottom-up, fundamental analysis of individual companies. We are interested in two factors - the price paid to own a piece of a business and the quality of that business.
Fundamental
Portfolios are built with a bottom-up approach; one stock at a time. We believe the best way to outperform the benchmark is by having the courage to differ from it.
Benchmark Agnostic
Our Process
To be successful over many years, we employ a methodical and consistent investment process, comprised of four primary stages.