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Applied Finance, a thought leader in valuation and portfolio construction, is a true “value” investment management company.  Unlike the majority of firms today that focus on low multiples to define “value”, we define value as identifying companies trading below their intrinsic value.  Our Valuation Driven® approach forms the foundation of our investment decisions.

 

Applied Finance is 100% employee owned, with the average tenure of our 10 equity partners being over 18 years.  Learn more about Applied Finance.

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EDITORS PICK

  • Intrinsic Value in Passive Indexing

    June 15, 2021

    While Applied Finance has long advocated for investors to consider the strategic advantages from incorporating a valuation-based discipline in portfolio construction and stock selection, this study provides compelling evidence that even passive allocations benefit when index weights are formed on intrinsic value characteristics instead of using market cap as a proxy. […more]

  • Quantitative Value Investing is Broken

    February 17, 2021
    This article first appeared on RealClearMarkets.com February 17th 2021 “All truth passes through three stages.  First, it is ridiculed.  Second, it is violently opposed.  Third, it is accepted as being self-evident.”  Arthur Schopenhauer Our last [...more]
  • Quantitative vs. Fundamental Analysis: Finance’s 60 Year Schism

    August 24, 2021

    Quantitative investment strategies have intellectually dominated the financial industry for sixty years. In practice, however, fundamental analysis offers crucial advantages. Therefore, it’s time for the two camps to overcome their differences and work together. […more]

  • Institutional Investor features Applied Finance Co-Founder Rafael Resendes

    June 25, 2021

    “We’re redefining what value is. The term has been tortured and confused with cheapness.” Mr. Resendes says. In our view, growth and value can coexist and regardless of what a price multiple/cheapness indicator might imply, high multiple companies can be undervalued in terms of their overall valuation. […more]

  • How to Value a Value Stock – Barron’s Feature

    August 24, 2021

    Our Co-founder, Rafael Resendes, has been featured by Sarah Max in Barron’s discussing the history behind our flagship Applied Finance Select Fund. Sarah explains why valuation distinguishes the Select Fund from most large value funds and why in the past three years it has performed better than 96% of its peers […more]

  • The False Bargain of Passive Investing

    July 14, 2020

    Today the irony continues, as the intellectual foundations in financial economics that underpinned Bogle’s incredible success are much less robust than they appeared in the early 70’s, yet the push for passive investing is stronger and more fervent than ever. For proactive, process-oriented, intelligent advisors this will create a great opportunity to distinguish yourself from the growing herd of “commodity” advisors who preach little more than fee minimization, rather than alpha generation or negative alpha avoidance. […more]

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