A small cap fund that looks for unloved companies priced at a discount to their liquid assets. Largely UK weighted, the fund has a bias to the service sectors.
The objective is long-term capital growth; income distributions (if any) are likely to be low.
The Deep Value investment Fund invests in companies that are trading at a discount to their net asset value (nav).
This particular investment approach is based on the philosophy created by Benjamin Graham, the dean of value investing. His most famous book the “The Intelligent Investor” is the basis on which The Deep Value Investment Fund approaches potential investments.
Companies that the fund invests in have strong balance sheets, creating a margin of safety, but tend to suffer from low (temporarily) profitability due to issues relating to e.g. specific business issues, legal, technological and or industry cyclicality.
Due to these factors these solid but cheap companies can be bought at attractive prices and with the benefit of time should be expected to return to previous levels of profitability and hence higher share prices. Buying companies at these low valuations will also often make them potential takeover targets.