The Value Perspective

This week we joined by Gary Sernovitz a Managing Director at Lime Rock, an oil and gas focused private equity firm, and the author of the Counting House, a novel about investment management. Gary started his career as an oil equity research analyst at Goldman Sachs before making the transition to the buy side. We’re delighted to have Gary on the podcast as we believe he is the first fiction writer that we have had on. His latest novel shines a light on what the university endowment world is like, how it operates, its different cultures, motivations and characters. While researching the novel, Gary spoke with Verger CEO Jim Dunn a future guest on the Value Perspective. In the episode, we discuss: Gary’s career journey; the research behind his novel; how an investor can differentiate themselves; the personalities and politics between decision makers; absolute returns vs relative; and finally, the ethical dilemmas faced by modern CIOs. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. Marketing material for Financial Professionals and Professional Clients only.  The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.  Past Performance is not a guide to future performance and may not be repeated.  Diversification cannot ensure profits or protect against loss of principal.  The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of investments to fall as well as rise.  Investing in emerging markets and securities with limited liquidity can expose investors to greater risk.  Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments.  This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.  Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.  

Welcome to Allocator’s Edge, a Value Perspective podcast mini-series where we will be engaging in conversations with some of the world’s top capital allocators. In an environment of heightened inflation and interest rates, we aim to unravel how and why capital allocators make the decisions that they do. The series will shed light on the inner workings of capital allocation to help listeners gain a better understanding of mandates and the intricate dance between strategy and reality. New episodes of the Allocator’s Edge will be released on alternating Thursdays. In this episode we are joined by a previous Value Perspective guest, Dan Mikulskis. This time he joins us as the CIO of People's Partnership, provider of The People's Pension. Last time he appeared as a consultant at LCP. In his new role, Dan leads the investment team that oversees the investments of the members of the People’s Pension with an AUM currently sitting at £21 billion. We discuss: Dan’s transition from a consultant at LCP to his role as CIO of the People’s Pension; the main challenges faced by the UK pensions industry today; the differences between theory and reality when it comes to capital allocation; how Dan’s decision making framework has changed and how he is thinking about a world with higher inflation and higher interest rates; and finally, how Dan is thinking about risk and the probabilistic nature of investing. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. Marketing material for Financial Professionals and Professional Clients only.  The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.  Past Performance is not a guide to future performance and may not be repeated.  Diversification cannot ensure profits or protect against loss of principal.  The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of investments to fall as well as rise.  Investing in emerging markets and securities with limited liquidity can expose investors to greater risk.  Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments.  This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.  Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.

In this episode, Merryn Somerset Webb discusses value investing, nuclear energy, passive vs active investing, pension risks, and hypothetical scenarios for the London Stock Exchange and the Treasury. The hosts also explore the challenges of FOMO, the UK pension system, the rise of passive investing, and ways to optimize the UK markets.

Welcome to Allocator’s Edge, a Value Perspective podcast mini-series where we will be engaging in conversations with some of the world’s top capital allocators. In an environment of heightened inflation and interest rates, we aim to unravel how and why capital allocators make the decisions that they do. The series will shed light on the inner workings of capital allocation to help listeners gain a better understanding of mandates and the intricate dance between strategy and reality. New episodes of the Allocator’s Edge will be released on alternating Thursdays. In this episode we look at some of the challenges currently facing the pensions industry in the UK and Europe. We’re joined by Peter Ward and Eilert Hinrichs from L.E.K. Consulting. L.E.K. Consulting is a world-class strategy consulting firm with over 40 years’ experience advising companies. Its expertise includes corporate strategy, M&A, operations, and organisational performance. Both Peter and Eilert have over twenty years’ experience in advising investors and leaders in the financial services sector. In this episode we cover: what the landscape for the defined benefit (DB) and defined contribution (DC) industry looks like in the UK; whether Peter and Eilert think DB in the UK is dead; how Insurance is participating in the de-risking of the DB space; Peter and Eilert’s outlook for Europe; and finally the findings and implications of a survey on the cost of ESG amongst different age groups in the UK. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. Marketing material for Financial Professionals and Professional Clients only.  The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.  Past Performance is not a guide to future performance and may not be repeated.  Diversification cannot ensure profits or protect against loss of principal.  The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of investments to fall as well as rise.  Investing in emerging markets and securities with limited liquidity can expose investors to greater risk.  Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments.  This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.  Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.  

In this instalment of our ESG series we welcome back a previous guest, Doomberg. We sat down with the green chicken to discuss what has happened in the eighteen months since we last had them on the show: why they moved to Substack and decided to leave X, formerly known as Twitter; changes in perceptions and narratives relating to ESG; the resurgence of nuclear and why it has a strong momentum this time; oil’s current and immediate future; AI’s role in the energy transition; and finally some comments on the geopolitical landscape. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. Marketing material for Financial Professionals and Professional Clients only.  The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.  Past Performance is not a guide to future performance and may not be repeated.  Diversification cannot ensure profits or protect against loss of principal.  The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of investments to fall as well as rise.  Investing in emerging markets and securities with limited liquidity can expose investors to greater risk.  Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments.  This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.  Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.  

Welcome to Allocator’s Edge, a Value Perspective podcast mini-series where we will be engaging in conversations with some of the world’s top capital allocators. In an environment of heightened inflation and interest rates, we aim to unravel how and why capital allocators make the decisions that they do. The series will shed light on the inner workings of capital allocation to help listeners gain a better understanding of mandates and the intricate dance between strategy and reality. New episodes of the Allocator’s Edge will be released on alternating Thursdays. In this first episode, we welcome Greg Schuler, CIO of Geisinger, a regional healthcare foundation in the US. Greg started out in the oil and gas industry, which he credits with helping him shape his view on risk. He then moved into venture capital during the tech bubble, another formative influence on his current outlook. After this he took a series of CIO roles: first with Jerry Kohlberg, one of the Ks in KKR; then BJC, a large hospital system in Missouri; then as CIO of the University of Pittsburgh endowment; before starting at Geisinger. The episode is hosted by Andy Evans, a fund manager on Schroders’ Global Value Team. Andy co-manages UK Income, European Income, European Recovery, and European Sustainable strategies. Greg and Andy discuss: what Geisinger is and how it was set up; what cashflow requirements look like for a hospital foundation and how they differ from a university; how Greg thinks about time in the fundamentals of the assets Geisinger are looking to materialise; the importance of communication with your investment committee; and how to apply the way surfers understand waves to how we invest. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. Marketing material for Financial Professionals and Professional Clients only.  The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.  Past Performance is not a guide to future performance and may not be repeated.  Diversification cannot ensure profits or protect against loss of principal.  The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of investments to fall as well as rise.  Investing in emerging markets and securities with limited liquidity can expose investors to greater risk.  Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments.  This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.  Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.

We kick off 2024 with a fun episode featuring some of our favourite guests.  Author and Director of Research at St James Place, Joe Wiggins, plays host and moderator in a Quality vs Value debate between Simon Hallett, the former CIO of Harding Loevner and owner of Plymouth Argyle football club, and Andy Evans, a portfolio manager at Schroders. The episode explores how two different investors think about markets and assets, the pain points in being a Quality or Value investor and the temperament you need for each style. The debate covers: how Simon and Andy define their own way of investing; how to assess a manager’s style by looking at their top 10 holdings as well as their emotional reactions; difficulties in extending time horizons; how each manager would manage money on the other side of the style spectrum; and finally how to deal with an investable universe that has become unusually expensive and whether to compromise on quality or valuation. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. Marketing material for Financial Professionals and Professional Clients only.  The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.  Past Performance is not a guide to future performance and may not be repeated.  Diversification cannot ensure profits or protect against loss of principal.  The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of investments to fall as well as rise.  Investing in emerging markets and securities with limited liquidity can expose investors to greater risk.  Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments.  This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.  Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.

In the final Value Perspective podcast of 2023 our guest is Ian Lance, a UK value fund manager at  Redwheel (formerly ‘RWC Partners’). Before joining Redwheel, he was a fund manager here at Schroders, where he worked very closely with Nick Purves. Nick Purves was a mentor to Nick Kirrage and Kevin Murphy in their early careers and coined a saying that has been passed on to every value investor at Schroders, that if no companies in a portfolio are going bankrupt on a yearly basis, then you’re not taking enough risk. While working at Schroders in 2010, Ian had the very bright idea to start a blog that went on to become the Value Perspective. Ian discusses with us; what it was like to work with Nick Purves at the start of the Value Perspective; what has changed and what has stayed the same in the City of London over his four-decade career; co-management and the risk of confirmation bias; what is the most difficult thing about value investing in today’s market; and finally, is the UK a dead asset class? Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. The views and opinions contained herein are those of individual to whom they are attributed, and may not necessarily represent views expressed or reflected in other communications, strategies or funds. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. Past Performance is not a guide to future performance and may not be repeated. The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change.

Value investing heavyweight Mohnish Pabrai joins the podcast to discuss his father's entrepreneurialism, his commitment to giving everything away to charity, the rationale behind cloning as a strategy, concentration and ergodicity in investment, and the importance of probabilistic thinking in investing.

As we near the end of the ten-year birthday celebrations of the Schroder Value Team we welcome two guests who were with us at the beginning of those ten years. Jamie Lowry and Ian Kelly are former members of the Value Team at Schroders, who departed to work for Prem Watsa, known as the Canadian Warren Buffett, managing the European investment book of Fairfax Financial. They left a lasting legacy with the Value Team with one of Ian’s TVP pieces, Hot Iron Trial by Ordeal: A Thirteenth Century Lesson for Investors, remaining one of our most read articles for many years after his departure. Kevin Murphy is the host for this episode, which covers: the journey from Schroders’ Value Team to Fairfax Financial; the difference between working for a long only fund and investing as part of a large insurance organisation; underperformance as part of a value team within an insurance company during the very tough years of 2019 and 2020; the beliefs they formed during their time with the Value Team and how these have been tested working at Fairfax Financial; and finally, their thoughts on private versus public investments. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. The views and opinions contained herein are those of individual to whom they are attributed, and may not necessarily represent views expressed or reflected in other communications, strategies or funds. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. Past Performance is not a guide to future performance and may not be repeated. The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change.