Prospector Market Insights

Tips on How to Approach Value Investing

Written by Prospector Partners | Apr 7, 2021 8:02:13 PM

Prospector approaches value investing from a credit perspective, with an emphasis on value-based principles and bottom-up fundamental analysis.

Our in-house, deep dive research is key to our approach, focusing on regulatory and statutory statements when available, in addition to GAAP.

We look at balance sheets first, cash flow second, and income statements last, paying special attention to marked to market balance sheets and private market value for capital intensive businesses.

It’s all about the approach, and at Prospector our time-tested, consistent approach is evident in our results.

Risk management is thoroughly embedded throughout the Prospector investment process. We operate within a long-established asset allocation comfort range, and don’t over bet.

The investment team views equities through a credit lens, and approaches risk management from that same credit perspective.

In our view, one of the most important pieces of risk management is maintaining a proper alignment of interests, and at Prospector we’ve been dedicated to that alignment for over 20 years maintaining significant investments in our products alongside our investors.

If you are interested in learning more about our approach to value investing, we encourage you to schedule some time to speak with one of our Portfolio Managers.