Church House Investment Management is launching a fund based on value investing, which aims to buy established stocks that have been undervalued by the market.
The Deep Value Investments Fund will hold no more than 30 stocks at a time and will aim to buy companies that have been profitable in the past, with positive cash flow for sustained periods.
The fund’s manager Jeroen Bos said the strategy is suited to the current market environment because it targets only firms that can be bought at a discount, which gives a margin of safety.
Value investing is well established in the United States. Warren Buffett, chairman of Berkshire Hathaway and one of the world’s most famous investors, describes himself as a value investor. But Church House said the strategy is less well-known in Europe.
©2012 funds europe
