April 4, 2025
Global Value

Matthew Fine, Value Fund PM, featured on Barron’s Live: The Outlook for Value Investing

Interview Summary

The Barron's Live discussion with Matthew Fine explores value investing in an overvalued market.  Fine focuses on financially strong businesses trading at a discount due to short-term concerns, avoiding "value traps" by selecting companies actively creating shareholder value. While skeptical of broad U.S. market performance, Fine sees significant opportunities in underappreciated global stocks, particularly in Europe, Japan, and the commodities sector. Fine expects a reversion in market sentiment as investors eventually rediscover the appeal of value stocks, driven by inevitable market cycles and economic realities.

Interview Highlights

  1. Value Investing Approach: Matthew Fine emphasizes contrarian investing, seeking companies with strong balance sheets trading at a discount due to temporary headwinds.
  2. Global Market Outlook: Fine sees global indices, especially U.S. stocks, as highly overvalued but finds opportunities in underappreciated international markets like Europe, Latin America, and Japan.
  3. Investment Themes: Fine highlights undervalued sectors such as autos (BMW, Subaru), offshore energy (Tidewater), and materials (Capstone Copper, Taiheiyo Cement), focusing on financial strength and long-term growth opportunities.
  4. U.S. Market Risks: Overconcentration in megacap growth stocks and historically high valuations pose long-term risks to U.S. indices, while smaller, neglected companies offer better value.
  5. Cyclical & Structural Trends: Demand for commodities like copper and cement remains strong due to infrastructure needs, but companies with operational efficiency and capital discipline stand out.

Overall Morningstar rating, as of March 31, 2025, vs. 159 funds. TAVFX was rated against the following numbers of Global Small/Mid Stock Category Funds over the following time periods: 159 funds in the last three years, 137 funds in the last five years and 85 funds in the last ten years. With respect to these Global Small/Mid Stock funds, TAVFX received a Morningstar Rating of 5 stars for the three-year period, 5 stars for the five year period and 3 stars for the ten-year period, respectively. Ratings based on risk adjusted return. Past performance is no guarantee of future results.

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