Concentrated Deep Value Strategy
A Private Equity Approach to the Public Equity Markets
How is this similar to private equity investing?
Greater Upside Potential: Portfolio holdings have market prices that are at significant discounts to their fundamental value providing greater opportunity for above average long-term returns. We invest with a “business owner” mindset, searching for investment candidates that have the potential to more than double in market price over a 3 to 5 year time period. Portfolio valuation measures similar to private equity investment valuation levels. Current portfolio characteristics are near 20-year absolute and relative lows to the overall market. Portfolio valuation measures at a 20%+ discount to Deep Value Strategy.
Truly Actively Managed: On the equity investment spectrum, Concentrated Deep Value is the opposite of index investing, providing differentiated value to investors through lower market capitalization exposure and very high active share (90%+).
What are the benefits for investors?
Our client-focused separately managed accounts offer:
- No Lock-up/Gates: While we recommend that client’s remain invested to achieve long-term goals, we recognize that investment strategies change.
- Liquidity: Holdings have historically been in very liquid investments, allowing the portfolio manager that ability to purchase and sell securities to maximize long-term performance for clients.
- Transparency: Clients are provided quarterly statements detailing portfolio holdings and characteristics. We are happy to discuss your account at any time.
- Attractive Management Fees: Based upon account value, we believe the fees should align client interests.
4Q 2018 Portfolio Snapshot
All data as of 12/31/2018
Total # Holdings: 20
% in Top 5 Holdings: 46.9%
Active Share: 99.9%
|Valuation Characteristics||Concentrated Deep Value||S&P 500|
|Free Cash Flow (FCF) Yield||>30%||8.0%|
Equity Sector Breakdown
- Concentrated Deep Value
- S&P 500
Source: Thomson Reuters, FactSet. Representative portfolio characteristics and sector weightings are subject to change at any time. Sector weightings and portfolio characteristics of individual client portfolios may differ, sometimes significantly, from those shown.
This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities and sectors listed. All investments are subject to risk, including the possible loss of principal. There is no guarantee investment objectives will be met. Neither Miller Value Partners, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.