Aegis Value Fund Inc · NASDAQ:AVALX
Aegis Value Fund — Investor Presentation (March 2021)
20 slides from Aegis Value Fund's investor presentation, Mar 31, 2021
Slide 1: AEGIS Value Fund (AVALX)
AEGIS Value Fund (AVALX) March 31, 2021 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: 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 High Investor Expectations Stock Price Negative Aegis looks to Surprise exit Position Overvalued Fundamental Value Positive Undervalued Surprise Undervalued Busin
Slide 4: Investment Philosophy – Taking Advantage of Volatility & Mean Reversion
Aegis Investment Philosophy – Taking Advantage of Volatility & Mean Reversion Aegis believes excess returns can be generated with small-cap stocks by: Purchasing a well-researched portfolio of fundamentally-sound companies during periods of stress or neglect, o Liquidity often low o Sentiment is p
Slide 5: Value Fund Track Record – Strong Outperformance Since Inception
Aegis Value Fund Track Record – Strong Outperformance Since Inception Over 22 years since inception, the Aegis Value Fund has outperformed the S&P 500 Index by 275 basis points per annum. The Fund experienced two periods of significant decline prior to 2020 – the financial crisis in 2008-2009 an
Slide 6: Historical Price-to-Book of the Fund
Price-to-Book of the Fund has historically correlated with forward returns Over the two decades of managing the strategy, we have found that the lower the price-to-book of the Fund, the better the forward investment returns have been. This correlation only furthers our conviction in the effectiven
Slide 7: 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 8: 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 9: 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 – seek to be aggressive amid market panics and cautious when sentiment is overly bullish
Slide 10: Investment Process – Finding the Undervalued Securities
Aegis Investment Process – Finding the Undervalued Securities 8,000 Equities (North America) Begin with a quantitative overlay to $30 million+ market cap. identify potential investment candidates Screen primarily on Price-To-Book Value Screen U.S. and Canadian listed stocks Additional Screening
Slide 11: Methods of Research & Information Sources
Methods of Research & Information Sources Review: 8,000 Equities (North America) o Company financials $30 million+ market cap. o Corporate presentations Screen primarily on o Regulatory filings Price-To-Book Value o Historic conference call transcripts o Industry publications/periodicals o Sell-si
Slide 12: Developing the Investment Case
Developing the Investment Case Evaluate cyclical/secular trends, 8,000 Equities (North America) competitive industry dynamics, sources $30 million+ market cap. of financial stress or competitive Screen primarily on advantage Price-To-Book Value Recast balance sheet with book-to- market asset and
Slide 13: Portfolio Construction, Monitoring & Management
Portfolio Construction, Monitoring & Management Concentrate on best ideas while remaining 8,000 Equities (North America) cognizant of correlated macro risks $30 million+ market cap. Top 10 holdings represent ~50% of assets Screen primarily on Price-To-Book Value No new investment into any indi
Slide 14: Key Takeaways
Key Takeaways Differentiated: One of just a few “true” small-cap value mutual funds with a disciplined focus on low price-to-book equities Experienced Management: Continuously managed by Scott Barbee since inception in 1998 Strong Track Record: The Fund has outperformed the S&P 500 Index by 27
Slide 15: Appendix
Appendix AEGIS 9 15 FUNDS
Slide 16: 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 17: Value Fund – Class Information Terms & Minimums
Aegis Value Fund – Class Information Terms & Minimums Institutional (AVALX) Minimum Investment*: Standard Accounts $10,000 IRAs $5,000 Subsequent Minimum Investment $250 Management Fee 1.20% Net Expense Ratio 1.50% *Investment minimums have been waived or reduced over a wide variety of distribution
Slide 18: 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 19: 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 20: 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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