Aegis Value Fund Inc · NASDAQ:AVALX
Aegis Value Fund — Investor Presentation (March 2020)
18 slides from Aegis Value Fund's investor presentation, Mar 31, 2020
Slide 1: AEGIS Value Fund (AVALX)
AEGIS Value Fund (AVALX) March 31, 2020 Managed By Aegis Financial Corporation
Slide 2: Introduction To Aegis
Introduction To Aegis Aegis Financial Corporation is a deep-value focused investment firm that strives to deliver long- term capital appreciation by investing in a concentrated, well-researched portfolio of out-of- favor, small-cap stocks trading at a significant discount to intrinsic value. Aegis V
Slide 3: Aegis Investment Philosophy – Taking Advantage of Volatility & Mean Reversion
Aegis Investment Philosophy – Taking Advantage of Volatility & Mean Reversion Stock Prices Typically Overreact to Changes In Fundamentals Equity Market High Investor Expectations Value Negative Aegis Surprise Exit Strategy Overvalued Fundamental Value Positive Undervalued Surprise Undervalued Busine
Slide 4: Aegis is a Highly Differentiated Fund in the Small Value Space
Aegis is a Highly Differentiated Fund in the Small Value Space Aegis portfolio valuation metrics show material differentiation versus both competitors and the broad market. Aegis offers the opportunity to obtain market exposure at a much lower price-to-book valuation multiple than the S&P 500 In
Slide 5: 2018 NBER Research: Virtually No True Low Price-to-Book Mutual Funds
2018 NBER Research: Virtually No True Low Price-to-Book Mutual Funds Independent, academic study1 of more than 2,600 funds over a 36 year period found a noticeable lack of mutual funds that provided significant exposure to low price-to-book securities Study concluded average value fund was close
Slide 6: Aegis Value Fund Track Record – Strong Outperformance Since Inception
Aegis Value Fund Track Record – Strong Outperformance Since Inception Over 21 years since inception, the Aegis Value Fund has outperformed the S&P 500 Index by 107 basis points per annum. The Fund experienced two periods of significant decline – during the financial crisis in 2008-2009 and durin
Slide 7: Aegis Competitive Advantage – Our Sources of “Alpha”
Aegis Competitive Advantage – Our Sources of “Alpha” Independent / Contrarian Mindset o Invest in companies that are fundamentally undervalued and often unpopular. o Work to avoid recency bias in our behavior, seeking to be aggressive amid market panics and cautious when sentiment is overly bullis
Slide 8: Aegis Investment Process – Finding the Undervalued Securities
Aegis Investment Process – Finding the Undervalued Securities The Aegis investment process begins with a 8,000 Equities (N. America) > $30 million quantitative overlay to identify potential market capitalization investment candidates. Baseline Quantitative Screening primarily on Price-To-Book Valu
Slide 9: Methods of Research & Information Sources
Methods of Research & Information Sources Review: 8,000 Equities (N. America) > $30 million o Company financials market capitalization o Corporate presentations Baseline Quantitative Screening primarily o Regulatory filings on Price-To-Book Value o Historic conference call transcripts Yields 200-3
Slide 10: Developing the Investment Case
Developing the Investment Case Evaluate cyclical/secular trends, competitive 8,000 Equities (N. America) > $30 million industry dynamics, sources of financial stress or market capitalization competitive advantage. Baseline Quantitative Screening primarily on Price-To-Book Value Recast balance sh
Slide 11: Portfolio Construction, Monitoring & Management
Portfolio Construction, Monitoring & Management Concentrate on best ideas while remaining 8,000 Equities (N. America) > $30 million cognizant of correlated macro risks. market capitalization Baseline Quantitative Screening primarily Top 10 holdings represent 40-50% of on Price-To-Book Value asse
Slide 12: Key Takeaways
Key Takeaways Differentiated: The Fund is one of just a few “true” small-cap value mutual fund offerings with a disciplined focus on exploiting opportunities in the low price-to-book segment of the equity market. Experienced Management: The Fund has been continuously managed by Scott Barbee sinc
Slide 13: Appendix
Appendix AEGIS 9 3 FUNDS
Slide 14: Investment Team Professional Bios
Aegis Investment Team Professional Bios Mr. Barbee has been Portfolio Manager of the Aegis Value Fund since its inception in 1998 and is the Scott L. Barbee, CFA controlling shareholder of Aegis Financial Corporation. Prior to Aegis, Mr. Barbee worked as an analyst Portfolio Manager covering oilfiel
Slide 15: Value Fund – Class Information Terms & Minimums
Aegis Value Fund – Class Information Terms & Minimums Institutional (AVALX) Minimum Investment*: Standard Accounts $10,000 IRAs & Automatic Investment Plans $5,000 Subsequent Minimum Investment $250 Management Fee 1.20% Net Expense Ratio 1.50% *Investment minimums have been waived or reduced over a
Slide 16: Value Fund – How To Invest
Aegis Value Fund – How To Invest Direct investment in the Aegis Value Fund: contact Aegis Funds c/o U.S. Bancorp Fund Services, LLC at 800-528-3780. Investment via a financial advisor or broker-dealer – partial sample of financial institutions through which Aegis Value Fund shares can be purchas
Slide 17: Definitions
Definitions Alpha – a measure of financial performance that gauges the performance of an investment against a market index or benchmark which is considered to represent the market’s movement as a whole. Basis point – equal to one hundredth of one percent (i.e. 1 basis point = 0.01%; 100 basis points
Slide 18: Important Disclosures
Important Disclosures Information contained herein has been obtained from sources believed to be reliable, but cannot be guaranteed. The views of the Advisor are subject to change without notice, and are not a guarantee of future results or a forecast of future events. Any recommendation made in thi
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