Investment Strategies - Applied Finance

Our Valuation Driven® investment process is unlike that of any other asset manager. We built and maintain a proprietary research database of over 20 million out of sample valuations, unavailable to any other investment managers, based on our Economic Margin® Framework.
Because our framework and research process is proprietary, we believe this provides us a sustainable and repeatable edge in providing our investors superior long-term wealth creation.
Ultimately, our edge is the Valuation Driven® culture we created that permeates all our research and portfolio construction processes. Our Valuation Driven® process differs greatly from managers relying on less rigorous approaches, or commonly available data such as price multiples, price momentum, and other commodity financial data.
Our process combines proprietary quantitative insights and qualitative analysis to varying degrees based on each strategy.
We aim to identify high quality and undervalued companies, across all economic sectors, which have the capacity and potential to thrive in economic cycles and outperform the overall over complete market cycles.

Valuation 50 Investment Strategy
Seeks superior risk-adjusted returns and tax efficiency by investing in U.S. large-cap companies

Availability

- SMA – Valuation 50 Factsheet
- Mutual Fund – Select Fund Factsheet

Valuation Small Investment Strategy
Seeks superior risk-adjusted returns by investing in U.S. small-cap companies

Availability

- Mutual Fund – Explorer Fund Factsheet

Valuation Dividend Investment Strategy
Seeks superior risk-adjusted returns, tax efficiency and above average yield by investing in U.S. large-cap companies

Availability

- SMA –Valuation Dividend Factsheet

For Additional Details and Strategy Requests Contact:
Saul Marquez
(312) 362-9905
smarquez@afgltd.com

Chris Austin
559-892-0401
caustin@afgltd.com

The information contained on this website is distributed for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. The information contained on this website is believed to be accurate as of the date submitted, and is subject to change. Any performance information referenced on this website represents past performance and is not indicative of future returns.

The Gross Profitability Trap

July 8, 2019 Derek Bergen, CFA and John Holt, CFA

The Gross Profitability Trap “But this time, it’s different!” More foolish words are rarely spoken in the financial industry, but they always seem to find their way back into the stock market lexicon. A firm’s [...more]

Intrinsic Value Factor®

February 4, 2019 Applied Finance

Valuation Driven™ Investing begins and ends with calculating the intrinsic value of every stock in a benchmark against which a portfolio is constructed, and comparing those values against traded prices. All of Applied Finance’s portfolios are Intrinsic Value Driven™, which differs significantly from a “value” perspective. To gain a better understanding into Applied Finance’s Intrinsic Value Driven™ approach, let’s first review traditional approaches to “Value”.

The traditional approaches to finding undervalued stocks use a simple ratio such as P/E or P/B, or a mix of them. These common approaches to value come with many shortcomings: […more]

Then and Now: Buyers Remorse Versus Sellers Loss

October 31, 2008 Applied Finance

Over the past couple months, worsening macro economic conditions, declining corporate profitability and a bottomless stock market have investors longing for the good old days when the economy delivered steady increases in GDP growth with [...more]

Economic Margin®

July 1, 2000 Rafael Resendes and Daniel J. Obrycki

A corporate performance metric should provide insights into what a firm is worth. Most money managers utilize common earnings-based measures of corporate performance and value, which are suspect and easy to manipulate. Applied Finance developed the Economic Margin (EM) framework to remove the noise inherent in accounting data.

Traditional accounting-based valuation methods provide an incomplete view of a company’s value by not accounting for the investment needed to generate the earnings, cost of capital, inflation or cash flow. […more]