Even after a decade-long bull market rally, there are still pockets of opportunities that value investors can target around the world. The key is to know what to look for and how to find them.
On the upcoming webcast, Meb Faber’s Action Plan for International Investing in 2019, Meb Faber, Co-Founder and CIO of Cambria Investment Management, will take the pulse of the current market environment and consider global opportunities where investors may still find real value.
For instance, the Cambria Global Value ETF (NYSEArca: GVAL) is the firm’s most popular ETF strategy. GVAL can help investors exploit valuation opportunities in markets outside the U.S. The fund invests in about 100 stocks from the world’s most undervalued markets, targeting the cheapest, most liquid picks in countries where political or economic crisis have depressed valuations.
The strategy tries to play on the historical attribute where future stock market returns tend to be lower when starting valuations are high and future returns tend to be higher when starting valuations are low.
The underlying index begins with a universe of 45 countries taken from developed and emerging markets. The Index then selects the top 25% cheapest country stock markets as measured by Cambria’s proprietary long term valuation metrics, similar to the CAPE ratio. It then uses a valuation composite across traditional metrics such as trailing P/E, P/B, P/S, P/FCF, and EV/EBITDA to screen for the 10 most undervalued stocks out of the top 30 largest stocks by market capitalization within each country.
“The GVAL ETF utilizes a quantitative approach to manage a portfolio of global equities. Global Value is a fundamentally focused deep value strategy with rules that are completely systematic,” according to Cambria.
Top holdings include Corticeira Amorim 3.4%, Banco Santander Brasil 2.3%, Motor Oil Hellas SA 2.0%, Israel Discount Bank 1.8% and Nice Systems Ltd 1.8%.
Financial advisors who are interested in learning more about international opportunities can register for the Tuesday, March 26 webcast here.
