While value stocks have outperformed the broad market over the last 3 years, after a decade of underperformance, we have found that many portfolios likely have a growth performance bias and could be missing the potential diversification benefits from what we consider a “true” value exposure that may be needed if the next decade is different than the last.
The June 2023 "Brandes Letter: Investing is a People Business" emphasizes the human role in investing. Ted Kim, our automotive analyst, exemplifies our ideal of independent thinking. Our process involves research, investment committees, and the margin of safety principle (the margin of safety is the discount of a security’s market price to our estimate of its intrinsic value). Ted's view on Tesla highlights the firm's approach to estimating a company’s valuation. Our letter underscores Brandes' belief in human insight as we seek to create value for our clients.
Director of Investments Mark Costa, CFA, recently joined Barron’s for an extensive Q&A about his approach to value investing, the performance of the Brandes International Small Cap Equity Fund, the case for international small-caps and where he sees opportunities in the marketplace. Read more: