A different approach to value investing

A different approach to value investing
Looking well past the current headlines coming out of Washington helps provide a certain level of calm to Randy Dishmon, manager of the Oppenheimber Global Value Fund Ticker:(GLVAX).
AUG 16, 2011
Looking well past the current headlines coming out of Washington helps provide a certain level of calm to Randy Dishmon, manager of the Oppenheimber Global Value Fund Ticker:(GLVAX). “Political turmoil determines the current market environment, but it doesn’t determine what a business is going to be worth on a three- or five-year time horizon,” he said. “Over the long-run the value of the business will win.” Mr. Dishmon manages his global multi-cap value fund by shunning traditional analysis and concentrating on each company’s private market value. “A lot of value managers will focus on things like price-to-book and price-to-earnings ratios, but all those accounting numbers can be massaged,” he said. “I have not seen a single number on an accounting statement that can’t be faked, and paying the wrong price is the biggest risk an investor faces.” His portfolio of 50 -70 stocks is currently 60% allocated to U.S.-based companies. The next largest country weighting is Japan at 12.5%, followed by the United Kingdom at 9%. As a bottom-up stock picker, Mr. Dishmon said “it comes down to opportunities.” “I’m finding tremendous opportunities right now and that’s part of the reason why I have the allocation I do to the U.S.,” he said. “Half the revenue of S&P [500 Index] comes from outside the United States. We’ve always looked at the world as one stock market.” That said, there are places Mr. Dishmon is not currently allocated, including the emerging markets. “I have had very little emerging markets exposure for the past two years,” he said. “I just don’t find value there.” Since the start of the year the fund is up 1.6%, which compares to a 3.4% gain by the S&P over the same period. Portfolio Manager Perspectives are regular interviews with some of the most respected and influential fund managers in the investment industry.

Latest News

CFP Board names Barry Gersten head technology officer
CFP Board names Barry Gersten head technology officer

The seasoned IT leader arrives as the credentialing body for CFP professionals considers AI's implications for the future of financial planning.

FINRA and advisors' other work
FINRA and advisors' other work

The brokerage industry regulator once again takes a stab at updating rules for independent brokers with other businesses and jobs

Minority capital comes with caution
Minority capital comes with caution

Transactions have slowed according to recent data as industry insider warns that the trip doesn't always match the brochure when minority investors come onboard.

SEC chair says hedge funds may have to submit less data
SEC chair says hedge funds may have to submit less data

Paul Atkins wants agency staff to narrow the scope of filing requirements.

Retirees may need to be less cautious with investments, says Concurrent retirement expert
Retirees may need to be less cautious with investments, says Concurrent retirement expert

With balances in 401(k) accounts slipping, it's even more important to maximize funds.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave