Investment value moves around the world

I recently met again with Lawrence Chin, co-manager of the Cundill Value Fund.  One of the things that frequently strikes me about the Cundill team’s work is how they search the world for deep value investment opportunities and how the best ones are so often found before the rest of the world gets excited about that idea.  For example, the fund moved out of the US and heavily into Japan at the turn of the century and then moved strongly back into the US when investment prices fell in 2008.  Canadian investments have ranged from zero to one third of the fund.  Since the managers are in search of a large margin of safety when they buy shares of a company, the share price must be lower than it has been for a while – exactly what scares off most investors and creates unusual opportunities.  Recently the managers have been finding some bargains in Europe and Asia.

Where in the world does the Cundill Value Fund invest?  Wherever the big bargains can be found.  If, as a personal financial advisor, I was to talk to clients about geographical allocations and moving between parts of the world deliberately, I would be second-guessing the very experts we have hired to carefully manage your money.  That is why in conversations with clients I will sometimes mention where fund managers are finding opportunities but I will avoid speculative recommendations for clients to move their money around.  Such changes are properly the responsibility of the fund managers and not the financial advisor.

Value migrates over time

You can find an up to date summary report including top holdings and performance data on the Cundill Value Fund by clicking here.