Alpha Hunter Lauren Templeton on Generating Alpha from Value Investing
|Mar 29th, 2012 | Filed under: Alpha Hunters, Alpha Strategies, Today's Post | By: vshah||
Value investing has been a successful strategy for many investors since the earliest days of equity markets. The principle is quite simple. Investors select stocks they feel are trading for artificially less than their intrinsic values and hence are (significantly) undervalued by the marketplace.
Sir John Templeton was a pioneer in this field He began his career on Wall Street in 1937 and went on to create some of the world’s largest and most successful international investment funds. In 1999, Money magazine rated him as, “arguably the greatest global stock picker of the century…“ He sold the Templeton Funds in 1992 to the Franklin Group for $440 million, and today his great niece Lauren Templeton continues the legacy through her firm, “Lauren Templeton Investments”. Ms. Templeton is the president and founder of the Southeastern Hedge Fund Association, INC and is a Trustee of the Baylor School and the Finance Advisory Board of the University of Tennessee Chattanooga alongside which, she is a member of the Templeton Foundation. She also co-authored “Investing the Templeton Way: The Market Beating Strategies of Value Investing Legendary Bargain Hunter”.
In this interview, Ms. Templeton takes us through her story of generating alpha from value strategies.
Q: What are the key reasons for some stocks becoming “bargains”?
[Lauren Templeton] We tend to see two scenarios that come up time and time again.
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Vikas Shah is Founder of the consultancy Thought Strategy and CEO of Swiscot Group (a diversified trading firm). Vikas writes and publishes Thought Economics, a leading journal where he interviews some of the most influential individuals in the world. He is a respected commentator and analyst on global issues, finance and economics and a non-executive to a number of philanthropic organisations worldwide. You can follow him on twitter @MrVikas.