Video Transcript
Matt Fleming, CFA, Partner
Head of the U.S. Value Equity Team, Portfolio Manager
Mark Goodman, CFA
Portfolio Manager
U.S. Value Equity Team
On Value Investing
Matt: I love the intellectual challenge of value investing. When you find a great company that’s continually growing, the question is not whether it’s a good company but just what the growth is. I think when you think of a value company, often times, there are real considerations of, is this a good company, is this a viable franchise? And there are many that are really thrown out in the discard bin.
Mark: I grew up with a father who was a stockbroker on Wall Street his whole career, and he was a small-cap value investor at heart. So, I really grew up learning the importance of protecting downside, having strong balance sheets, and kind of finding skewed risk-reward opportunities.
Matt: So, it’s really intellectually stimulating. And it really forces us to think differently. The goal is to try to see something that the market doesn’t.
On Biggest Lessons
Mark: I’d say the biggest lesson that I’ve learned over the years in my career is the importance of protecting downside through strong balance sheets and good management teams that are good stewards of capital. And that’s really helped inform my investment philosophy over time.
Matt: I really try to avoid, if at all possible, a turnaround situation. And I’ve learned that when I’m in a turnaround situation or a situation that has become a turnaround, I really try to exit. My thinking is threefold. One is that turnarounds, typically, it gets worse before it gets better. Two is it typically takes longer for whatever situation is underway to get resolved. Third is it’s often not clear what the end payout is. So, you really don’t know what you’re waiting around for.
Matt: And then, I would add one other thing. There’s opportunity cost to any investment. So, even if you find a situation that you think is going to take some time, it could be a bumpy ride. It’s really important to not think about that just by itself but really compare what may be better risk-adjusted opportunities in which you can invest.
On William Blair
Matt: For as long as I can remember, William Blair has been really known as a home for investors. Really the best and the brightest. Resourcing teams, enabling them to do what they do and giving them the freedom to pursue their craft, and giving the benefit of a much larger firm.
Mark: William Blair has an excellent reputation for its entrepreneurial culture, its investment talent and rigor, and its private partnership model, which are all really important for success in this business.
Matt: I love the partnership model. That speaks to me about we’re all in this together. And there’s really a lot of cross-collaboration.
Disclosure
The views and opinions expressed herein are those of the speaker(s) as of the date of publication, are subject to change without notice as economic and market conditions dictate, and may not reflect the views and opinions of other investment teams within William Blair. Factual information has been obtained from sources we believe to be reliable, but its accuracy, completeness, or interpretation cannot be guaranteed. This material may include estimates, outlooks, projections, and other forward-looking statements. Due to a variety of factors, actual events may differ significantly from those presented. This video has been provided for informational purposes only and should not be considered as investment advice or a recommendation of any particular strategy or investment product, or as an offer to buy or sell any securities or related financial instruments in any jurisdiction. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions. Investing involves risks, including the possible loss of principal. Past performance is not indicative of future results.