The Value Perspective

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.  

This week on the Value Perspective, we’re delighted to be joined by Joe Peta. Joe is the author of Moneyball for the Money Set, which explains how techniques gleaned from sport analytics can help to predict the returns of portfolio managers with startling accuracy. Before putting pen to paper, Joe started his career at Lehman Brothers before moving to Nomura. He then moved over to the buy side, working for Novus Partners, Kingsford Capital Management and Point72. To chat with Joe, Andy Evans from the Value Team is joined by Robert Donald, Chief Investment Officer of Schroder GAIA Helix. Robert’s quant skills make him an ideal co-presenter for this episode. Robert, like Joe started on the sell side as an equity analyst before moving to GLG Partners where he ran a long-short strategy. He also worked for Soros Fund Management and Brummer and Partners before joining us as Schroders in 2017. In this episode we discuss: Joe’s method for breaking down performance in a way that assesses skill, including hit rates, explosiveness, magnitude, scaling, and sizing; parallels with sports analytics and applicability for assessing skills for different types of investors; Goddard’s Law; Managers’ deficiency at sizing decisions; and finally, prediction tools and predicting power. 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.  

The 2023 Rugby World Cup final is set as South Africa take on New Zealand for glory on Saturday 28 October in Paris. So, we thought this would be great time to replay the Value Perspective episode that we recorded with professional rugby referee Wayne Barnes back in 2021. Wayne will be in the thick of the action in Paris this weekend as he has been honored with selection as the match referee for the final.  But back in 2021 we spoke to him when the Lions were in the midst of their South Africa tour. You'll hear how Wayne and his team prepare for matches, the unique pressure of making decisions in a very public setting and how his training as a barrister has helped him be a better referee. Enjoy!   EPISODE NOTES: 1:07 Intro 2:33 Who are the Lions?  3:06 How did Wayne start in reffing?  7:32 How do you structure your decision making as a referee?  12:55 How does referee preparation affect the flow of a game? 18:06 How do you tackle ambiguity in the rules of rugby? 22:09 For referees, their decisions are broadcast in real time through a stadium and on television. How does that environment affect decision making? 25:13 How do you work with other referees during a game? 29:45 How do you allow the context of the game to affect your decision making? 34:48 How is referring held accountable? 39:25 The France v Wales game from the Six Nations 47:35 Who is the hardest player you’ve had to ref? 50:35 Do you segment yourself as a rugby referee from yourself as a rugby fan? 55:56 Book Recommendations   Book Recommendations: Rebel Allocator by Jake Taylor Sooley by John Grisham Belonging: the Ancient Code of Togetherness by Owen Eastwood   NEW EPISODES: You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple 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.  

This week on the Value Perspective, we are joined by value stalwart Richard Oldfield. Richard founded Oldfield Partners in 2004, where he managed global funds until 2016, before finally retiring from the firm in 2021. Richard started his career back in the 70s at Warburg Investment Management, which later became Mercury Asset Management. Then he had a stint at a family office before founding Oldfield Partners. He is also the author of Simple but not Easy: a Practitioners Guide to the Art of Investing. The second edition of this book was printed in 2021 after a very successful first run back in 2007. Richard is joined by Simon Adler from the Value Team to discuss: Richard’s learnings over his 30 year career; what can be done in today’s markets to instill a long term view of performance; risk defined as permanent loss of capital or active risk; how much should one hold in Value at any one point in time; and finally, Richard’s experience outside of fund management and how that helped him throughout his career as a fund manager. 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.  

In this episode of our Value Perspective ESG mini-series we’re joined by Arvind Sanger, founder and Managing Director of a hedge fund that focuses on sensible energy transition. We share a mutual friend with Arvind in former guest Arjun Murti. We sat down with Arvind to discuss: what has changed in the energy and material markets in the thirty plus years of his career; how the uranium market works; uranium’s demand and supply impact on the nuclear power sector; and finally nuclear’s main challenges, based on another recent piece on the matter by another former past guest Robert Brice. 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.

This week we're replaying a podcast episode with Carson Block, founder of Muddy Waters Research, from June 2022. Carson joined us to discuss the contentious topic of short selling. Short selling is an investment or trading strategy that speculates on the decline in a stock or other security’s price. Carson takes an activist approach to short selling, founded on exposing fraudulent practices in publicly traded companies. This challenges the view that short selling, by its nature, is an exploitative practice. We talked to Carson about the probabilistic thinking and psychological framework needed by a contrarian thinker as well as the cross disciplinary collaboration that lies behind exposing unethical financial practices. 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  

This week in the final episode of our Meet the Manager series to celebrate the 10th anniversary of the Value Team at Schroders, Tobias Carlisle returns to interview the steadfast host of the Value Perspective, Juan Torres Rodriguez. You may know Tobias as the host of the Acquirer’s Multiple Podcast, from the Value: After Hours Podcast or indeed as a frequent guest on this podcast. He is a deep value investor at heart and is the founder of Acquirers Funds. He is also a frequent author on the topic having published four books and has a new one out soon, so keep your eyes peeled. Juan is the host of the Value Perspective but he is also an emerging markets value investor at Schroders and has been with the company since 2017. Previous to Schroders he had stints at Pictet, Credit Suisse and Bank Columbia. In their conversation, Tobias and Juan focus on emerging markets. They cover: Juan’s journey from Columbia to the Value Team in London; emerging markets’ tough decade and what it means to be a value investor in these markets; cyclical businesses and the opportunity set in emerging markets; and finally how the Value Team embraces behavioural biases and has built a process to help cope with them. 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.  

Tom Gayner, CEO of Markel Group and director at Coca-Cola, shares insights from his remarkable journey in the insurance industry. He discusses the strengths of co-management versus sole leadership, highlighting the importance of collaboration and company culture in decision-making. The conversation also explores the impact of narratives on financial understanding, using Markel’s approach as a case study. Gayner emphasizes probabilistic thinking for effective investment strategies and reflects on the lessons of 'The Godfather', merging cinema with decision-making wisdom.