Value Fund

The Intelligent Investor is one of the few genuinely independent sources of stockmarket advice. That doesn’t guarantee we get everything right but it does mean we’re incentivised to do so.

The trouble is, having built a reputation for reliable, profitable recommendations, potentially thousands of members can end up trying to buy the same stock at the same time. And that can push the price up, inevitably reducing potential returns and disappointing members.

To offset this we’ve tended to confine our research to large, liquid stocks but this too has its problems—it’s often easier to find value in smaller stocks that tend not to be widely covered by professional analysts. There’s less mispricing among larger, more widely researched companies.

So we’ve started The Intelligent Investor’s Value Fund to allow us to fish in unloved, thinly researched areas of the market without unduly impacting prices.

There are no hard and fast rules about how many stocks we will be able to find trading at a substantial discount to their underlying value. Nor do we know in which particular areas of the market they will arise. But, in our experience, the most attractive opportunities tend to be in the most unloved and under-researched areas of the market. They also tend to be few and far between.

That means the portfolio could potentially end up invested in a relatively small number of stocks (less than 20) and that these stocks could be small and illiquid. This concentrated, selective approach is part of Intelligent Investor’s strategy for providing superior long-term returns. But the concentrated nature of the portfolio is likely to result in increased price risk. That is, the value of the portfolio is expected to be substantially more volatile than that of the wider stock market.

You can find out more about the fund’s investment objective, strategy and how we intend to construct the portfolio by using the navigation options at the top of this page. Alternatively, you can find out more about value investing and the investment team in the About us section.

Legals