Boyar and MAPFRE AM rub shoulders with major funds in London
At a time when most assets are moving in the same direction (with falls in both equities and the most conservative positions), the search for securities that generate long-term returns is becoming increasingly challenging. However, isolated from the performance of the major indexes, certain companies undervalued by the market and with good risk-reward ratios can form a sensible portfolio against this backdrop.
“Value finds many opportunities” in periods of instability such as the current climate, states Jonathan Boyar, CEO of Boyar Value Group and partner at MAPFRE AM since the end of 2019. Wearing the adage “buying a dollar for 50 cents” on his sleeve and joined by Eduardo Ripollés, Institutional Business Development Manager at MAPFRE AM, the expert took part in the London Value Investor Conference, a leading European event on asset management and value investing. There, they shared space with financial market gurus such as Christopher Hohn, from TCI Fund Management, Joel Greenblatt, from Gotham Asset Management, and Alex Roepers, from Atlantic Investment Management.
The American expert’s firm belief in taking advantage of uncertain times when “there are many high-quality companies with good fundamentals and good long-term growth prospects” is very apparent in the MAPFRE US Forgotten Value Fund. Jonathan Boyar explains the unique philosophy behind this MAPFRE AM value fund, which lies in the search for securities overlooked by the market.
However, despite the opportunities that may present themselves during these months, Boyar believes “there are many investors who hate bargains”: “There are a lot of companies that are 30-60% off their highs, and people seem to be running away.”
Jonathan Boyar acknowledges that Forgotten Value is “an anti-index fund,” that operates independently of the performance of the main selective funds. Citing John Templeton (one of America’s most renowned investors and philanthropists), the expert states that “if you buy the same securities everyone else is buying, you will have the same results as everyone else.”
From this perspective, he considers this fund to be “a very good supplement to the allocation.” “When it comes to the search for true equity investors, we don’t look at the major indexes. For example, if technology makes up 26% of indexes, our fund does not necessarily have to have 26% of the portfolio in that sector,” he says.
If you want to watch a summary of the event, click here.