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, and 4.8 percentage points a year better than the Russell1000 Value index.
Mr. Resendes discusses his biggest pet peeve, investors conflating the terms “value” and “valuation,” and how the distinction between the two makes all the difference between investing in stocks that are simply cheap and identifying companies that are trading below their intrinsic value.
The article highlights Mr. Resendes current thoughts on the value of Facebook as well as several big wins for the fund including buying NVDA at a split adjusted price of $3.50 and selling it at $132 a return of 3600% and replacing NVDA with KLAC which is up ~52% since its addition.
Read the entire article: Facebook Is ‘a Screaming Value,’ Says This Top-Performing Fund Manager