At its most simple, value investing is an investing strategy whereby investors buy a stock they believe to be undervalued (compared to an estimate of the company’s intrinsic value), with a view to profiting when the stock price increases to more accurately reflect the value of the stock, based on the fundamentals of the company.
This is the investment strategy behind all of Pender’s portfolios. Our Investment Team selects securities that have undergone deep, bottom-up, fundamental analysis, with a focus on downside risk mitigation, and buy them for less than our conservative estimate of their intrinsic value. We then anticipate an upward correction as the company grows in intrinsic value and markets recognize this.
It is the firm’s strong belief that over the long term, a value based strategy will outperform the general market.