Summaries
A List of Value Investing Funds in Singapore and Outside of Singapore
Chris Lee Susanto, Founder at Re-ThinkWealth.com
14 July 2020 (Information in the article is as of May 2019)
As a value investor, as a practitioner of value investing, I am very interested in studying funds I view as an executioner of the various value investing methodologies I myself am very passionate about.
In this article, I will list down some of the value investing funds in Singapore and outside of Singapore.
All the information gathered is inferred from the fund’s respective websites. We make no warranty of any kind of the accuracy of the information provided, for further details best to check directly with them through their website. And this is not a sponsored post.
This list will be updated in the future.
My Thoughts on Running A Value Investing Fund
My end goal is to set up a sustainable and successful value equity fund for the long-term.
Although I have not set up my value investing fund, I have some friends who are either running their own funds or is an investment manager inside a value investing fund before.
How I Will Structure This Article
I will structure this article by first categorizing the various funds according to where they are mainly operating at. In this article, we will cover funds operating in Singapore and outside of Singapore.
I will list down the funds under each country according to these further subcategory:
A. Value proposition & fees – what is attractive in my view about these funds that makes investors want to invest in it. Fees to me are also a primary investor’s concern in today’s day and age. That is why I categorized value proposition and fees together.
B. Investment strategy – My summary of their investment strategy that they employ based on what I can deduce from their website.
C. Track records – their investment performance as listed on their website or other sources that I find credible.
Value Investing Funds in Singapore
1. Aggregate Asset Management
A. Value proposition & fees
- Zero management fee.
- A performance fee of 20% based on high water-mark which is used for salaries, director’s fees, office rental, marketing expenses, investment research, and beer and chips.
- $2000 one-time subscription charge for new clients.
- Fund expense ratio for custodian, admin and audit fees of approximately 0.13% of fund size.
- Aggregate said that they are the first fund management company in Singapore that offers a zero-management fee model in it’s one and only flagship fund – The Aggregate Value Fund.
- Aggregate say that typically most funds charge a management fee as a fixed percentage of assets under management (AUM). This incentive funds to chase for AUM instead of fund performance.
B. Investment strategy
- Value Investing.
- They invest in undervalued listed securities in Asia by practicing an independent, bottom-up approach to security selection.
- Extensive diversification across Asia – they hold more than 600 stocks in their portfolio. This results in low volatility and reduces the chances of substantial permanent loss.
C. Track records
As of March 2019 since inception, Aggregate has beaten Singapore and AC Asian Pacific Ex Japan index but lose to Hong Kong index.
Their fund had done pretty well since inception.
Their outperformance is 0.38% against AC Asia Pac Ex Japan and 0.40% against the weighted index and this I assume is before fees.
Because there is no indication of whether the performance is net of fees or not.
Source: Aggregate Asset Management
2. Yeoman Capital Management
A. Value proposition & fees
- Yeoman said that their long term track record speaks for itself
- They said that they have a coherent and understandable investment process that they work at under boom, bust or flat conditions
- Yeoman said that the principles are robust and can take knocks
- They also said that they have people who will get it done and the owners invest their own money in the funds on the same terms as clients
B. Investment strategy
- Value
- Long-only
- Small cap equities in Asia
- A time horizon of medium to a long term of 5 years or longer
- 21 years of track record investing in Asia ex-Japan small cap equities
- 8 years of track record investing in Asian ex-Japan small cap equities
C. Track records
- In the 21 years 5 months ending Mar 2019, the funds under management of Yeoman yielded an absolute cumulative return of +969.80% or a CAGR of +11.70% p.a. nett of all fees (in SGD terms with dividends reinvested).
Yeoman all Asia portfolio is benchmarked against the MSCI AC Far Easy ex-Japan Small Cap. This return presented is nett of fees.
The above shows their track records since October 1997 which was about 21 years and 5 months ago. Their return displayed above is as the graph said, nett of all fees with dividends re-invested.
3. Inclusif Value Fund
A. Value proposition & fees
- Zero management fees
- 16% performance fees for class A and C
- Lock up of 3 years instead of 5 years
B. Investment strategy
- They focus on long term returns from Asia Pacific Equities
C. Track records
- Inclusif class A shares started trading in June 2017 and as of April 2019, it is up by $3.13, which is a 3.13% increase in absolute NAV return
- Class B and C shares are both down from their starting NAV per share date on January and February 2018 respectively
4. Heritage Value Fund
A. Value proposition & fees
- Zero management fees
- Pay only for performance
- Perfect alignment with the investor’s interest
- 1-year lock-in
B. Investment strategy
- Value-oriented and research-driven
- Investing in publicly-listed companies that are trading at a significant discount to its underlying value in the midst of a down cycle
C. Track records
- Did put their CAGR since inception under the fund performance page
- Since inception, their returns are mostly positive except for in 2018
Value Investing Funds Outside of Singapore
1. Value Partners Group
A. Value proposition & fees
- One of Asia’s leading asset managers with assets under management of US$18.3 billion
- The first asset management firm listed on The Hong Kong Stock Exchange in 2007
- 200+ awards and prizes
- Value investing focused
- Investment team consisting of 70 seasoned professionals conducting 6,500 in-person due diligence meetings every year
B. Investment strategy
- A bottom-up approach to stock selection
- Based on their value investing discipline and focuses on intensive fundamental research
- 3 “R” principles: Invest in the Right Business that is run by the Right People and is at the Right Price
- Uses seven core skills in investing: organization, research, decision-making, deal-structuring, execution, maintenance and exit
- Manage risks through developing a thorough understanding of the underlying business, and looking for a high margin of safety
- Willing to be contrarian and challenge common assumptions in order to add value
C. Track records
- They have 13.9% annualized return and 2,735.50% cumulative return since launch in 1993 for Value Partners Classic Fund (A Units)
2. Dhandho Funds
A. Value proposition & fees
- Monish Pabrai
- 0% management fees, 25% performance fee above a 6% hurdle rate with high watermark
- Only bring products to market that is considered world-class
B. Investment strategy
- Value investing
- Concentrated portfolio focusing on companies with a wide moat
- Infrequent bets, only bet when odds are overwhelmingly in favor
- Advocates investing in distressed companies’ stocks that belong to distressed industries
C. Track records
- I cannot find the data on his website but based on Investopedia: “Using principles and strategies he learned from Warren Buffett, Pabrai founded Pabrai Investment Funds in 1999. His long-only equity fund has returned a cumulative 517% net for investors versus 43% for the S&P 500 Index since the fund’s inception in 2000. Outperforming the S&P 500 by 1103% from its inception through 2013, Pabrai quickly became one of the most recognized value investors in the world.”
Legal Disclaimer:
Re-ThinkWealth is a personal value investing & options selling blog. By using this Site, you specifically agree that all the information provided is for general information purposes only and is not intended to be personalized investment or financial advice.
Important: Please read our full disclaimer.
Chris Lee Susanto
Founder of the value investing blog Re-ThinkWealth.com (if you type “value investing blog” in Google, his blog is likely the first one). Being a full-time investor himself, Chris knows that he did not beat the S&P 500 return so far (as of the time of this writing) by listening to stock tips. So, when he teaches, he also doesn’t believe in giving stock tips as it is not sustainable for you in the long run. He will teach you how to make your own intelligent decisions with his 4M1S framework. Feel free to also join his free investment telegram channel here.
Read also now:
Why Netflix Raised The Price of It’s U.S. Subscription And Is It A Mistake?
Netflix currently has more than 65 million U.S. subscribers and about 195 million paid […] Their last hike for the U.S. price was in January 2019.
The Ultimate List of Investment and Finance Blogs/Websites in Singapore
Being an avid follower of many investment and finance blogs or websites in Singapore, I thought why not I create an
My 5 Key Takeaways From SPH FY2020’s Earnings
1. Long-Term Challenge With Media Division The first thing that comes to mind when we hear SPH is the newspaper. And newspaper makes money through […]
8 Value Investing Lessons From Beating The S&P 500 Return So Far
There are many value investing lessons that I have learned throughout these past five, six years. For today, I thought to share with you eight of the value investing lessons […]
Here Are My Five Key Takeaway From Tesla 2020 Battery Day
Elon Musk is a fantastic marketer and an innovative entrepreneur. I have been curious about the Tesla story for quite some time. And here are my five key takeaway from Tesla 2020 […]
Is Snowflake (NYSE: SNOW) Worth Investing? Here Are My 5 Takeaways
Snowflake does cloud computing that implements a variable pricing model, which can be at times more attractive than fixed packages […]
Nasdaq Is Officially In A Correction Territory: What Is Next?
The adage that “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” by Benjamin Graham could not be more true over the past few days. As of 9 September 2020, […]
My 3 Thoughts on Yesterday’s Deepest US Market Decline Since June
Yesterday (3 September 2020), the US market had its deepest one day decline since June. The S&P 500 and Nasdaq had their deepest declines since June 11 and for Dow, it was their biggest decline since June 26 […]
Will The Stock Market Crash One More Time in 2020?
My Bet: In 2020, The Stock Market Will Not Crash Again. Yes, it is hard to predict where the stock market is heading in the short term. But my bet with regards to virus-related concern is that I do not think that we will crash again back to March-April Lows in 2020 just because of it […]
Is SIA Shares Worth Buying? Here Are My Thoughts (August 2020)
Think About How SIA Was When Times Was “Normal” Before we got into this COVID-19 mess, SIA is already not a great business to own even when times were “normal.” All of us know that the airline […]
The Eight Accounting Fraud or Red Flag Signs To Look Out In Stocks
In this article, I’d like to share eight signs of potential fraud in our stocks portfolio that we should be careful of. These are eight simple potential warning signs of bad financial reporting or early markers […]
My 5 Key Takeaway From AEM Holdings 1H 2020 Results
3. As of 1H20, Most Earnings Paid Out As Dividends Based on AEM 1H20 reports, their cumulative capital allocation breakdown from 2017 to 1H2020 is as follows: Dividends – 47%, Acquisitions – 25%, Capex – 18%, Buybacks – 10%. It is interesting to note that […]
Top 10 Warren Buffett Quotes on Investing | Re-ThinkWealth.com
Is FB a social media company? An advertising company? Or a chat company? Or a VR company? Online […]
Quick Analysis on FB Stock by Re-ThinkWealth.com (August 2021)
Is FB a social media company? An advertising company? Or a chat company? Or a VR company? Online […]
Growth or Value Investing? Why Not Both? – Re-ThinkWealth.com
Both value and growth investing have the same goal: which is to find the biggest opportunity or a gap or […]
Will Carnival Corp Stock Sail Higher in 2021? (June 2021)
“Carnival” based on the Oxford dictionary can also be defined as “a traveling funfair or circus.” The name is apt for a […]
Here Are My Quick Analysis on Palantir Technologies Stock (June 2021)
Palantir is a company that provides large organizations with a minimum of $500 million in revenue the ability to […]
High dividend yield, blue-chip stocks, is it safer? | Re-ThinkWealth.com
Many investors love to invest based on dividend yield alone. They think that dividend stocks are safe, but are all of […]
The Best Investors And Money Managers of All Time [Ultimate List]
The purpose of this article is to compile a list of some of the worlds greatest investors and money managers. We will also […]
How to Invest Like Chamath Palihapitiya
Who is Chamath Palihapitiya? Chamath is a former Facebook executive who became a venture investor. How to invest like Chamath […]