Value & Income
We are long-term value investors who believe that short-term factors prompt many market participants to overreact to news which may have little or no impact on the true value of a company. This causes share prices to diverge from the intrinsic value of the underlying business and provides an opportunity for long-term investors to purchase shares at an attractive discount. This builds in a margin of safety but also provides meaningful long-term total return potential through both dividend income and capital appreciation.
A long, proven heritage
Nick Purves, Ian Lance and John Teahan have a long-established investing partnership and between them have more than seventy years of experience. During this time, they have encountered a variety of investing cycles, which helps the team to remain committed to their investment discipline during periods when value investing falls out of favour. All of their strategies follow the same approach, which aims to position the portfolio to whichever parts of the market look most undervalued, based on the team’s judgements about long-term intrinsic value.
Intrinsic value estimates
We value businesses by estimating their long run earnings potential. This helps us avoid companies which appear cheap but are, in reality, at the top of a cycle or in structural decline. Conversely, we are attracted to businesses suffering a temporary dislocation but where we believe earnings, and therefore the share price, are likely to recover in the future. For this value to be realised the opportunities must also have strong balance sheets and capable management.
Stewardship Report 2023
In this report we strive to deliver a clear picture of our stewardship activities for the past year, from our various corporate engagements and our voting record, to an insight into our collaborations with other investors. We also seek to illustrate the risks, exposures and challenges faced by the stocks we hold on your behalf and the material sustainability risks at a portfolio level.
Value investing in the current market environment
Introducing the Redwheel UK Climate Engagement Strategy
Temple Bar Investment Trust Plc
Nick Purves and Ian Lance were appointed as Co-portfolio Managers of the Temple Bar Investment Trust Plc as at 2nd November 2020. The trust is longstanding since 1926 and its objective is to provide shareholders with growth in income, as well as growth in capital. Nick and Ian employ a strategy of value investing.
Equity investors often exhibit behaviour that would seem counterintuitive to a Monopoly player. The game requires an unwavering focus on intrinsic value as a function of earnings potential, a long-term view, and a calm and rational approach to decision-making. As in Monopoly, so in investing.
Ian Lance, Redwheel Value & Income explores how value has outperformed growth practically everywhere since November 2020. The obvious, arguably only, exception is in large cap US stocks. Should we consider this "the last shoe to drop"?
In his latest paper, Ian discusses why some share buybacks are good, some are bad, and some are even ugly.
Meet the team
Ian joined Redwheel in August 2010 as a Partner and Fund Manager in the Value & Income team with fellow colleague Nick Purves from Schroders.
Nick joined Redwheel in August 2010 as a Partner and Fund Manager in the Value & Income team.
John joined Redwheel in 2010 as Portfolio Manager and Partner within the Redwheel Value & Income team.
Larry started his career at Redwheel in 2010 supporting the Sales team and now is an Analyst in the Value & Income Team.
Miki joined Redwheel in September 2015 and brings over 19 years of industry experience.
Filippo joined Redwheel in June 2022. He is an Analyst in the Value & Income team.
