Thomas Forsha of River Road Asset Management - A Value-Based Strategy to Generating Attractive Returns

Aug 9, 2022

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Investing is so much more than just numbers and trends. It's about psychology and temperament. While risk management and market volatility both play an important role in investor success, the investor's overall attitude towards investing is just as important. Though financial advisors are highly regarded for their investment recommendations, what are the best ways for investors to remain invested during uncertain economic times?

In this episode, Rusty and Robyn are joined by Thomas Forsha, Co-Chief Investment Officer and Portfolio Manager for River Road Asset Management's Dividend All-Cap Value and Focused Absolute Value® Portfolios. Prior to joining River Road in 2005, Thomas served as Equity Analyst and Portfolio Manager for ABN AMRO Asset Management USA. At River Road, Thomas and his investment team aim to provide attractive total returns and capture the strong downside they typically expect with dividends.

Thomas talks with Rusty and Robyn about value investing, market risks, and River Road Asset Management's strategies for creating portfolios that generate attractive total returns.

Key Takeaways

[04:56] - What drew Thomas to the investment industry.
[05:59] - Thomas’ role at River Road Asset Management.
[06:47] - River Road Asset Management's value investment philosophy.
[11:25] - What River Road Asset Management sees as the market's future.
[13:58] - Today's biggest market risk.
[16:48] - Thom's outlook on value investing.
[20:27] - How River Road Asset Management creates portfolios in today's market.
[22:41] - Thom's perspective on the financial and technology sectors.
[25:45] - Thom's personal investment strategy.
[26:36] - How Thomas maintains his physical and mental well-being to perform at his best.
[29:37] - River Road Asset Management's Reading Recommendations.

Quotes

[07:08] - "Value is in the eye of the beholder. Two value managers can look at the same stock and have two very different opinions on how attractive it is." - Thomas Forsha

[08:51] - "If you go too much in the deep value, you're going to sacrifice some of that downside protection as those types of companies typically don't do particularly well when credit markets tighten up and markets get quite volatile." - Thomas Forsha

[11:33] - "We have a simple, consistent framework that we've been using to look at the market forward-looking over the years. And it's based upon five key factors: valuation, monetary policy/credit markets, fiscal policy, regulation sentiment, and then what we call a wild card." - Thomas Forsha

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