Value Opportunities with a Long Time Horizon

Featuring Desmond Kinch

Value investor Desmond Kinch’s strategy is buy and hold, with an average holding period over five years and portfolio turnover less than 20%. His impressive track record since 1998 is testament to the process.
With smart insight into value investing over longer time horizons and single stock ideas in emerging Asia and Eastern Europe, Des shows that success is not always about timing, but also about buying very cheaply.

Published on
11 November, 2016
Topic
Investment Framework, Micro, Global Investment
Duration
43 minutes
Asset class
Equities, Real Estate, Bonds/Rates/Credit, Currencies
Rating
20

Comments

  • JU

    Jay U.

    22 4 2018 06:03

    0       0

    Anyone still following Ashmore Global Opportunities? Still trading at over a 30% discount to NAV. Just wound down one of its last 3 portfolio companies, Bedfordbury, which constitutes 32% of NAV. Should be receiving the cash by the end of Q2 2018. Probably a big distribution coming?

  • AF

    Andrew F.

    16 5 2017 20:02

    0       0

    Current Bubble Status

  • AH

    Aaron H.

    8 12 2016 04:21

    1       0

    Worth the 42 minute investment.

  • AB

    Andrew B.

    23 11 2016 03:58

    2       0

    When you watch this in tandem with reading the OAM Chairs reports by Desmond - even though they are some months old - you get a sense of how disciplined these guys are. Exceptional 42minutes worth and the ideas are still valid if you DYOR.

  • JH

    John H.

    20 11 2016 01:03

    4       0

    yes, more value/single stock conversations; maybe that's the most contrarian call of all right now.

  • NZ

    Nicholas Z.

    18 11 2016 04:52

    0       0

    NAV Net Asset Value

  • PD

    Paul D.

    16 11 2016 22:57

    2       0

    Great interview!
    More value investors please!!!

  • DK

    Desmond K.

    16 11 2016 20:47

    5       0

    Anthony, this is Des Kinch. You can see our fee structure on our web site at www.oam.com.ky. It is not your typical hedge fund fee structure. We also can show you that ETFs have been unable to match the markets in which we invest, not even close! As far as your comment that buying passive vehicles can deliver our objective of generating 8-10%/annum returns over the next 10 years, I wish you luck!

  • DK

    Desmond K.

    16 11 2016 20:42

    4       0

    This is Des Kinch. Raghu, in reply to your comment about us not investing in frontier markets and less liquid situations, I mentioned a Vietnam fund, a Greek company which I didn't name, and I mentioned investments that took us a year or more to accumulate. We do not shy away from illiquidity or frontier markets, but at the end of the day, we manage open-ended funds so we have to balance overall liquidity of our funds' underlying investments with the fact that we may not be as fortunate in having clients stick with us, and in some cases add to their investments, during the next financial crisis.

  • AF

    Andrew F.

    14 11 2016 09:26

    2       0

    Great insight and different perspective. Nice Trade Generation ideas and thinking.

  • RD

    Ryan D.

    13 11 2016 20:31

    0       0

    Good interview. A pessimisto like me needs to hear some Long ideas from time to time. Keep em comin'. Anyone know the name of the Northern Italian toll road play? Thanks Desmond and Realvistion Crew!

  • JL

    Jacob L.

    13 11 2016 10:59

    0       0

    Forget my comment - Desmond confirmed it a few minues later...

  • JL

    Jacob L.

    13 11 2016 10:42

    1       0

    Pretty sure the Norwegian companies Desmond is talking about is Wilhelm Wilhelmsen Holding, which I have been covering on my hammerinvesting blog quite extensively

  • JL

    Jacob L.

    13 11 2016 10:42

    2       0

    Pretty sure the Norwegian companies Desmond is talking about is Wilhelm Wilhelmsen Holding, which I have been covering on my hammerinvesting blog quite extensively

  • AD

    Anton D.

    12 11 2016 18:25

    2       1

    Craig, I think its NAV- Net Asset Value When its trading below NAV it means that if it liquidated or opened-ended tomorrow you are getting in at 50-60% discount to real cash value. it can happen in a CEF.

  • WM

    Will M.

    12 11 2016 14:11

    2       1

    Craig I think NEV = Net Economic Value
    NEV equals the fair value of assets minus the fair value of liabilities.

  • vt

    vadim t.

    12 11 2016 12:10

    2       0

    Raoul, how do you consider Russia to be cheap? You've mentioned it during several interviews recently. I assume you are looking at p/e or something else, but you realize do that there is long way down the road as to a profit and cash flow for most of the companies, right? And the state is gonna come for the rest of that flow since slowly but surely it's running out of money. And there is no rules there at all. I mean it -not the bad ones, at all! I could go on, since i spend most of my life there, but i just want to emphasize that this has nothing to do with an investing it's a pure gambling, with bed outcomes. IMHO.

  • CA

    Craig A.

    12 11 2016 11:55

    0       0

    Anyone know what NEV means?

  • AW

    Anthony W.

    12 11 2016 10:27

    0       2

    It would be interesting to know if his charges fit within a hedge fund structure because if they do and he targets 8-10% annualised returns, then I think there will be a lot of downward pressure on his fee base in the coming years since passive vehicles can deliver similar results.
    I am more drawn to hedge fund interviews on RealVision personally although it's nice to hear about alternative approaches.

  • AH

    Andreas H.

    12 11 2016 08:49

    0       0

    Super!

  • ES

    Edward S.

    12 11 2016 05:06

    4       0

    HYLD "trades" at a 4.25% discount.. The redemption basket is 50k shares and the avg volume is 47k. The holdings are very junky and equally illiquid.. ie the bid/offer is likely wider than 4.25%.. So yes, ETFs are starting to trade at a discount.... but for most that do, it's definitely not enough. Only in the mainstream ETFs do redemptions happen (give up AUM, are you crazy?).

    Usually when I read "Investing for the long term".. I think oh, they're covering their ass in case they're wrong for their short term trade. This was enjoyably surprising.. and very informative in that some CEFs trade at 50% discounts outside of the US. We certainly have a low bar for "cheap"

  • RR

    Raghu R.

    12 11 2016 01:43

    2       0

    For someone who is not threatened by liquidity, I was expecting to hear examples in frontier markets. The farthest he has gone is about Russia and India. So I guess liquidity matters even when average holding period is north of 5 years.

  • DS

    David S.

    11 11 2016 22:20

    10       0

    Very enjoyable interview. It shows how much hard work goes into long-term investing trying to find significantly undervalued assets. Since most of us do not have the time or the ability, it is easier to allocate a portion of a portfolio to a long-term investment manager and leave it alone - like gold. DLS

  • HA

    Hamed A.

    11 11 2016 15:36

    24       0

    who knew Steve Martin knew so much about value investing