Deep Value

Deep Value : Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations

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The economic climate is ripe for another golden age of shareholder activism Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations is a must-read exploration of deep value investment strategy, describing the evolution of the theories of valuation and shareholder activism from Graham to Icahn and beyond. The book combines engaging anecdotes with industry research to illustrate the principles and methods of this complex strategy, and explains the reasoning behind seemingly incomprehensible activist maneuvers. Written by an active value investor, Deep Value provides an insider's perspective on shareholder activist strategies in a format accessible to both professional investors and laypeople. The Deep Value investment philosophy as described by Graham initially identified targets by their discount to liquidation value. This approach was extremely effective, but those opportunities are few and far between in the modern market, forcing activists to adapt. Current activists assess value from a much broader palate, and exploit a much wider range of tools to achieve their goals.
Deep Value enumerates and expands upon the resources and strategies available to value investors today, and describes how the economic climate is allowing value investing to re-emerge. Topics include: * Target identification, and determining the most advantageous ends * Strategies and tactics of effective activism * Unseating management and fomenting change * Eyeing conditions for the next M&A boom Activist hedge funds have been quiet since the early 2000s, but economic conditions, shareholder sentiment, and available opportunities are creating a fertile environment for another golden age of activism. Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations provides the in-depth information investors need to get up to speed before getting left behind.
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Product details

  • Hardback | 240 pages
  • 176 x 242 x 23mm | 434g
  • New York, United States
  • English
  • 1. Auflage
  • 1118747968
  • 9781118747964
  • 127,694

Flap copy

Deep Value offers investors an authoritative explorationof the philosophy of deep value investment. Written by TobiasCarlisle--an active value investor and the well-known bloggerat important resource describes theevolution of the various theories of intrinsic value and activistinvestment from Benjamin Graham to Warren Buffett to Carl Icahn andbeyond. Filled with engaging anecdotes and meticulous research, thebook illustrates the principles and strategies of deep valueinvesting and examines the counterintuitive idea behind itsextraordinary performance. Deep Value is a practical guidethat reveals little-known valuation metrics that activist investorsand other contrarians use to identify attractive, asymmetricinvestment opportunities with limited downside and enormousupside.

Tobias Carlisle presents an insider's perspective onvaluation and activism in a format that is accessible to bothprofessional and general investors. The value investment philosophyas first described by Benjamin Graham initially identified targetsby their discount to liquidation value. This approach has provenextremely effective; however, those opportunities have all butdisappeared from the modern stock market. To succeed, today'sdeep value investors have adapted Graham's philosophy, embracing its spirit while pushing beyond its confines. In DeepValue, Carlisle examines Graham's 80-year-oldintellectual legacy using modern statistical techniques to offer apenetrating and highly original perspective: that losingstocks--those in crisis with apparently failing businesses anduncertain futures--offer unusually favorable investmentprospects. As the author demonstrates, the evidence reveals anaxiomatic truth about investing: investors aren't rewardedfor picking winners; they're rewarded for uncoveringmispricings.

Deep Value shows the place to look formispricings--in calamity, among the unloved, the ignored, theneglected, the shunned, and the feared.
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Back cover copy

Praise for Deep Value

"I highly recommend Deep Value. It takes a lively look ata variety of value investing strategies starting with the father ofsecurity analysis, Ben Graham. It outlines how individual investorscan vastly outperform simple index strategies. For these valuestrategies to work, investors must be patient and brave, as itrequires looking at stocks that the herd ignores. It will be auseful addition to any value investor's library."
--Jim O'Shaughnessy, Chairman and Chief Executive Officer, O'Shaughnessy Asset Management, LLC, and author, What Works onWall Street

"Value investing is the most intuitive form of investing everdevised--the attempt to buy one dollar's worth of assets forsixty cents. In his new book, Carlisle provides a thoroughlycontemporary guide to the discipline, informed by killer anecdotes.Deep Value is part historical saga, part treasure map--amust-read for all investors."

--Joshua M. Brown, author, The Reformed Broker blogand the bestselling book Backstage Wall Street; star ofCNBC's The Halftime Report; Chief Executive Officer, Ritholtz Wealth Management

"Deep Value is a refreshing and highly entertaining workthat makes a persuasive case for traditional value investment and arevival of Graham-style 'ownership consciousness'. It is acompelling addition to the value investing canon."
--Vitaliy Katsenelson, Chief Investment Officer, InvestmentManagement Associates, Inc., and author of The Little Book ofSideways Markets

"From accounts of bold corporate raiders and behavioralpsychology to hard quantitative research, Deep Value leavesno stone unturned in a passionate exploration of what makes valueinvesting and activism work."
--Christopher Cole, CFA, Founder and Managing Member, ArtemisCapital Management, LLC

"In Deep Value, Carlisle provides a qualitative andquantitative view of why value investing has worked since the timeof its conception. The book is a unique combination of carefuldescriptions of the value styles and players, backed up by datathat supports the conclusions reached. I strongly recommend thisbook to the value aficionado."
--Michael van Biema, Founder and Chief Investment Officer, vanBiema Value Partners, and co-author, Value Investing: FromGraham to Buffett and Beyond

"Carlisle has written an engaging history of the market and itsinfluence on the evolving theory of value investment. He hasproduced a valuable addition to any value investor's library. I'mglad I read it."
--John L. Schwartz, MD, Chief Executive Officer, andCo-Founder, The Value Investing Congress

"Carlisle's work succeeds on two levels: It is both a grippingaccount of some of the most notable episodes in the history ofshareholder activism as well as an instructive guide to profitingfrom mean reversion and activist opportunities in today's market.Highly recommended!"
--John Mihaljevic, CFA, Managing Editor, The Manual ofIdeas

"Deep Value is a smart, modern take on classic BenjaminGraham-style value investment. It's half history book and halfquant stock screen guidebook. Learn both the history of valueinvesting as well as a practical way to put it to work."
--Mebane Faber, Chief Investment Officer and Portfolio Manager, Cambria Investment Management, LLC, and author, The IvyPortfolio

"Carlisle weaves together a rich tapestry of multi-disciplinaryacademic research, investment theory, and historical anecdotes toproduce the must-read investment book of 2014."
--Jacob L. Taylor and Lonnie J. Rush, Managing Partners ofFarnam Street Investments and Visiting Professors at the UC DavisGraduate School of Management

"Carlisle rigorously shows why value investing will continue towork. Deep Value is a MUST-READ for value investors."
--Wesley R. Gray, PhD, Executive Managing Member, AlphaArchitect, and co-author, Quantitative Value

"Carlisle has persuasively rendered a thought-provokingexamination of a counterintuitive investment theory. The book is asengrossing as it is useful."
--Allen Benello, Chief Executive Officer, White River Partners, LP

"Carlisle's book provides a wonderful combination ofentertaining case studies, synthesized with results from academicresearch and statistical backtesting, to arrive at sometimessurprising conclusions about what works in investing, andwhy."
--Henry Patner, Director of Research, HEG Capital
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Table of contents

Preface ix Acknowledgments xv About the Author xvii Chapter 1 The Icahn Manifesto 1 Chapter 2 Contrarians at the Gate 19 Chapter 3 Warren Buffett: Liquidator to Operator 35 Chapter 4 The Acquirer's Multiple 53 Chapter 5 A Clockwork Market 77 Chapter 6 Trading in Glamour: The Conglomerate Era 99 Chapter 7 Catch a Falling Knife 119 Chapter 8 The Art of the Corporate Raid 151 Chapter 9 How Hannibal Profits From His Victories 169 Chapter 10 Applied Deep Value 187 Index 217
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About Tobias E. Carlisle

TOBIAS E. CARLISLE is the founder and managing director of Eyquem Investment Management LLC and serves as portfolio manager of the firm s fund and managed accounts. He is best known as the author of the well-regarded website and as co-author of Quantitative Value: A Practitioner s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (Wiley). He has extensive experience in business valuation, portfolio management, investment research, public company corporate governance, and corporate law. Prior to founding Eyquem in 2010, Tobias was an analyst at an activist hedge fund, general counsel of a company listed on the Australian Stock Exchange, and a corporate advisory lawyer. As a lawyer specializing in mergers and acquisitions, he has advised on transactions across a variety of industries in the United States, the United Kingdom, China, Australia, Singapore, Bermuda, Papua New Guinea, New Zealand, and Guam.
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Rating details

323 ratings
4.3 out of 5 stars
5 50% (162)
4 34% (109)
3 13% (43)
2 2% (7)
1 1% (2)
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