Aegis Value Fund Inc · NASDAQ:AVALX
Aegis Value Fund — Investor Presentation (June 2019)
21 slides from Aegis Value Fund's investor presentation, Jun 30, 2019
Slide 1: AEGIS Value Fund (AVALX)
AEGIS Value Fund (AVALX) June 30, 2019 Managed By Aegis Financial Corporation
Slide 2: Table of Contents
Table of Contents Aegis Introduction Page 3 Investment Philosophy Page 5 Aegis Investment Process Page 9 Appendix/Important Disclosures Page 16 2
Slide 3: Introduction To Aegis
Introduction To Aegis Aegis Financial Corporation (“AFC”) is a deep-value focused investment firm that endeavors to deliver excess returns by concentrating investment in securities, often small or neglected, which trade at material discounts to assessed fundamental value. Aegis Value Fund Assets: $1
Slide 4: Aegis Financial Corporation Organizational Chart
Aegis Financial Corporation Organizational Chart Experienced team with strong infrastructure The Aegis investment staff has an average of 17 years of securities research and trading experience. The current Aegis investment team has now been working together for many years. The Aegis trading/cl
Slide 5: Investment Philosophy – Taking Advantage of Volatility & Mean Reversion
Aegis Investment Philosophy – Taking Advantage of Volatility & Mean Reversion Equity markets are inherently emotional, often overreacting to events; recency bias can create exploitable dislocations offering opportunity for contrarian, long-term oriented, fundamentally focused investors. Small-ca
Slide 6: Why Aegis Focuses on Small-Capitalization, Low Price-to-Book Value Equities
Why Aegis Focuses on Small-Capitalization, Low Price-to-Book Value Equities Multiple studies have demonstrated that over long historic time spans, stocks with low price relative to accounting book value have materially outperformed the broad market. Historic Cross Sectional Market Returns By Size
Slide 7: Value vs Growth - Historical Look & Potentially Compelling Investment Case
Value vs Growth - Historical Look & Potentially Compelling Investment Case Value has outperformed growth on a rolling 10-year annualized basis during the vast majority of the past 82 years. Growth has had brief stretches of outperformance including during the Great Depression, the Tech Bubble an
Slide 8: Competitive Advantage – Our Sources of "Alpha"
Aegis Competitive Advantage – Our Sources of “Alpha” • Invest in companies that are unpopular if our independent analysis Independent/Contrarian determines they are fundamentally undervalued. Mindset • Avoid “recency” bias – be aggressive amid market panics and cautious when sentiment is overly bull
Slide 9: 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 10: 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 11: 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 12: Portfolio Construction, Monitoring & Management
Portfolio Construction, Monitoring & Management Top 10 holdings represent 40-50 percent of 8,000 Equities (N. America) > $30 million assets/top 20 represent approximately 65 percent market capitalization of assets. Baseline Quantitative Screening primarily Concentrate on best ideas/most underval
Slide 13: 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 14: 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 and the Russell 2000 Value Index by 249 and 150 basis points per annum, respectively. The Fund experienced two periods of significant decli
Slide 15: 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 16: Appendix
Appendix AEGIS 9 16 FUNDS
Slide 17: 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 18: Aegis Value Fund – Class Information Terms & Minimums
Aegis Value Fund – Class Information Terms & Minimums Class Institutional* Retail (AVALX) (AVFAX) Minimum Investment: Standard Accounts $1,000,000 $2,000 IRAs & Automatic Investment Plans $1,000,000 $1,000 Subsequent Minimum Investment $250 $250 Net Expense Ratio 1.50% 1.75% *Investment minimums for
Slide 19: Aegis 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 20: 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. Book Value - a company’s common stock equity as it appears on a balance sheet. Cash Flow - the ne
Slide 21: 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