Value Investing: Metropolitan Capital Advisors believes value investing, the strategy of buying stocks at an appreciable discount from the value of the underlying businesses, provides a roadmap to navigate successfully not only through good times but also through downturns.
MCA looks to the market as a creator of opportunity, not as a guide for what to do. The excessive exuberance and fear of others can generate mispricings that can be capitalized upon.
This strategy requires challenging conventional wisdom and applying independent qualitative and quantitative judgment. Value investing can provide a margin of safety for the investor experiencing the vicissitudes of volatile markets and economies.
Value investing requires deep reservoirs of patience and discipline, particularly since it often involves buying companies that are “out of favor”.