A Pioneer in Global Value Investing

When value did well, Brandes tended to do even better. With nearly 50 years managing value strategies, we strive to deliver benchmark-beating results through our research-driven approach. While we cannot predict performance, we are optimistic for value given the interest-rate environment and the valuation dispersion between value and growth stocks.

With financial media full of articles and reports about the challenges of investing in China, many investors wonder if China is even investible given its current economic troubles, the geopolitical tensions surrounding Taiwan, and many other factors. In this letter, we share some observations about how we navigate this major market on behalf of our clients. We are cognizant of the significant macro issues and believe selectivity is key when evaluating investment candidates. As with all investments that we make, we do our fundamental work to determine if our estimation of the risk/reward trade-off (relative to opportunities elsewhere) is appropriate for deployment of client capital.

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.