A classic, contrarian value strategy that focuses on bottom-up identification of investment ‘bargains’ - those stocks that are currently trading at an attractive discount to their intrinsic worth. Intrinsic worth is our assessment of the underlying value of a business based on a dispassionate, risk-assessed view of earnings, book value, and free cash flow among other considerations. Such shares are lowly valued in absolute terms and relative to their own history. These stocks will almost always attract a sceptical view from the majority of investors and commentators ensuring there are low expectations for the stock. True bargains are not simply statistically cheap companies – they must be rigorously researched and risk-assessed to ensure they provide us with a margin of safety.
The strategy delivers a highly active but diversified portfolio, driven by a bottom-up investment philosophy, focussed on markets other than North America. Asset allocation is purely a result of stock selection, eschewing macro calls or themes, resulting in a portfolio that is clearly distinct from the index. As with all Oldfield Partners strategies, the EAFE Equities strategy combines fundamental analysis of intrinsic worth with patience to wait until the price of those investments reflects that value, delivering compelling long-term performance.
The Overstone UCITS Fund plc applies the UK Stewardship Code Statement of Oldfield Partners LLP as its shareholder engagement policy.
Andrew joined OP in March 2013. He had previously been employed by SVG Capital in London for seven years managing mainly European equity portfolios. Before joining SVG, he held portfolio management positions at Sovereign Asset Management, American Express Asset Management and Phillips & Drew Fund Management. He graduated from Cambridge University. He co-manages the global and EAFE equity portfolios and contributes to the overall investment selection.
Nigel is one of the founding partners of OP. He was previously at MLIM for 13 years. He was a director and portfolio manager on the global team. At MLIM he was also a member of the emerging markets and European teams in London and, from 1997 to 1999, the Asia team in Singapore. He graduated from City University. He is Chief Investment Officer and Chief Executive. He co-manages the global and EAFE equity portfolios and contributes to the overall investment selection.