Israel Value Funds adopt an investment style that can be summarized as a long-term oriented, disciplined and focused approach that capitalizes on our expertise in identifying good companies selling below their intrinsic business value through intensive fundamental research. In short, we are 'Value Investors' and are guided by basic truths taught long ago by such investment canons as John Maynard Keynes, Benjamin Graham, Warren E. Buffett, Charles T. Munger, and their dedicated and successful followers.
We believe that superior long term performance is a direct function of intensive, rigorous and investigative research habits. These include our ability to think independently, our commitment to think critically, and our willingness to think differently.
We believe that Value can be found anywhere. As such, we invest in companies without regard to whether they are conventionally viewed as small, medium or large capitalization, or whether they are categorized as growth, cyclical, turnarounds, etc. Our focus rests entirely on the economics and intrinsic value of the business. We prefer to invest in companies primarily based in Israel that trade both on Israeli and foreign markets, but may also invest opportunistically in other non-Israeli related businesses.
As it is our investment objective to beat the market, we do not follow the diversification dogma that is conventional in the money-management industry. We make no attempt to mirror a benchmark, either by weighting or composition. Rather, we believe that by adopting a concentrated approach, we are required to analyze, value and get to know the business to a greater extent. When we identify a business that is attractive to us, and which meets all investment criteria, we tend to take a meaningful position. Simply put, we concentrate our assets in our best ideas.
We are patient long-term investors, not traders, speculators or market-timers. We believe that adopting a philosophy of investing for the long term, is very much like marriage – it forces investors to think critically and selectively, and demands that one gets to know 'one's partner' extremely well before committing one's fund. Also like in marriage, a long term investment philosophy reduces the frictional costs significantly. As such, our funds typically have a very low turnover, as well as a partner-friendly fee structure.
We act like owners and love what we do. To us, Value Investing is more than just our livelihood – it is our passion. We stand alone in our commitment to a patient, long-term investment strategy, our willingness to withstand and take advantage of short-term market volatility, and a strong qualitative research ethic.
Our Commitment to Our Partners
- "We Eat Our Own Cooking": the managing partners of the Israel Value Funds have a majority of their families' net worths invested alongside the funds' investments. By investing alongside our partners, they can rest assured that their investments will be treated as if they were our own, and know that their interests are directly aligned with ours. If they lose, we lose. If we win, they win more.
- We commit to communicating candidly and openly to our partners. We are readily available to speak with them at all times, but are unable to discuss our holdings or what we are currently investing in.
- We commit to maintaining a patient, long-term unleveraged investment philosophy, and ignoring short-term market movements. We will not be influenced by 'flavor-of-the-month' trends, rumors or market crowds, and shun companies that employ aggressive accounting procedures.
- Our management fee is directly tied to the performance of our partners' investment. If their investments perform poorly, we are not rewarded. We only get paid after our partners get paid.
- We are committed to minimizing as much as possible overhead and transactions costs.
Israel Value Funds Ltd. © 2008