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Michael Keppler: The case for value investing remains strong
Marketing Communication
Date:
15. April 2024
The renowned value investor Michael Keppler is retiring from professional life. Going forward, the management and advisory roles of several well-known fund strategies from Keppler Asset Management will be assumed by Lingohr Asset Management. This value boutique is part of the
financial holding company Amauris Invest. In an interview, Michael Keppler and Lingohr CEO Dyrk Vieten, who also heads Amauris Invest, explain the details of this transition.
Michael Keppler, Company Founder, Keppler Asset Management
Dyrk Vieten, CEO, Lingohr Asset Management
Champions News: Mr Keppler, you have decided to leave the asset management industry. How did this come about?
Michael Keppler: I am stepping back from business activities for personal reasons. After working for many years for German and American firms and more than 30 years at the helm of my investment advisory firm, Keppler Asset Management, the time has come to bid farewell to active entrepreneurial life.
You have played a key role in shaping the value investment style over the past few decades. Where does value stand today?
Michael Keppler: The focus of the value strategy is, as is well known, to acquire stocks at below their actual value. When selecting stocks, we prefer a lower price relative to earnings, dividends, or cash flows, thereby securing a margin of safety against potential depreciation in value. Over the past 100 years, the value style has been dominant over seven decades, underperforming only in the 1930s and 1990s, as well as between 2010 and 2020, due to the strength of growth stocks. The case for value investing remains absolutely viable.
Dyrk Vieten: This is evidenced, for example, by the performance of many Keppler funds. Among the most renowned strategies managed by the firm are the Global Advantage Fund - Major Markets High Value (ISIN: LU1821205884) and the Global Advantage Funds – Emerging Markets High Value (ISIN: LU1821206189). Since its inception in May 1993, the Global Advantage Fund - Major Markets High Value has grown more than seven times in value. The funds launched and advised by Michael Keppler consistently rank among the best in their respective categories.
What prompted you to entrust the management and consulting of many of your strategies to Lingohr Asset Management GmbH?
Michael Keppler: Lingohr Asset Management GmbH is taking over the management and advisory roles for numerous mutual funds, including the "Global Advantage Funds" product range and other mandates. The firm has been synonymous with consistent value investing for 30 years and is known for its disciplined stock selection without being influenced by market trends. Lingohr Asset Management GmbH steadfastly pursues a long-term investment policy aimed at achieving steady capital growth and long-term outperformance relative to the benchmark.
Will anything change for investors?
Dyrk Vieten: For many years, Keppler funds have been utilised in Germany by both private and professional investors as value strategies to achieve the best possible performance with minimal transaction costs. We are integrating the public funds from Keppler Asset Management into the structure of Lingohr Asset Management GmbH and will continue to actively manage Michael Keppler's established fund strategies in the interest of value-oriented investors.
We remain committed to quantitative selection methods tailored to the specific investment focus of each fund. We are particularly pleased that Michael Keppler will continue to serve on the Board of Directors of the Global Advantage Funds SICAV. This demonstrates continuity following the transition. By taking over the funds, we aim to continue and honor Michael Keppler's life's work.
Michael Keppler: I have known Dyrk Vieten for a very long time, and we share a close relationship of trust. Therefore, we have found the right partner in fund management with Lingohr Asset Management GmbH to successfully carry our strategies into the future. The management will continue to achieve excellent results through an established value approach.
Michael Keppler: I am stepping back from business activities for personal reasons. After working for many years for German and American firms and more than 30 years at the helm of my investment advisory firm, Keppler Asset Management, the time has come to bid farewell to active entrepreneurial life.
You have played a key role in shaping the value investment style over the past few decades. Where does value stand today?
Michael Keppler: The focus of the value strategy is, as is well known, to acquire stocks at below their actual value. When selecting stocks, we prefer a lower price relative to earnings, dividends, or cash flows, thereby securing a margin of safety against potential depreciation in value. Over the past 100 years, the value style has been dominant over seven decades, underperforming only in the 1930s and 1990s, as well as between 2010 and 2020, due to the strength of growth stocks. The case for value investing remains absolutely viable.
Dyrk Vieten: This is evidenced, for example, by the performance of many Keppler funds. Among the most renowned strategies managed by the firm are the Global Advantage Fund - Major Markets High Value (ISIN: LU1821205884) and the Global Advantage Funds – Emerging Markets High Value (ISIN: LU1821206189). Since its inception in May 1993, the Global Advantage Fund - Major Markets High Value has grown more than seven times in value. The funds launched and advised by Michael Keppler consistently rank among the best in their respective categories.
What prompted you to entrust the management and consulting of many of your strategies to Lingohr Asset Management GmbH?
Michael Keppler: Lingohr Asset Management GmbH is taking over the management and advisory roles for numerous mutual funds, including the "Global Advantage Funds" product range and other mandates. The firm has been synonymous with consistent value investing for 30 years and is known for its disciplined stock selection without being influenced by market trends. Lingohr Asset Management GmbH steadfastly pursues a long-term investment policy aimed at achieving steady capital growth and long-term outperformance relative to the benchmark.
Will anything change for investors?
Dyrk Vieten: For many years, Keppler funds have been utilised in Germany by both private and professional investors as value strategies to achieve the best possible performance with minimal transaction costs. We are integrating the public funds from Keppler Asset Management into the structure of Lingohr Asset Management GmbH and will continue to actively manage Michael Keppler's established fund strategies in the interest of value-oriented investors.
We remain committed to quantitative selection methods tailored to the specific investment focus of each fund. We are particularly pleased that Michael Keppler will continue to serve on the Board of Directors of the Global Advantage Funds SICAV. This demonstrates continuity following the transition. By taking over the funds, we aim to continue and honor Michael Keppler's life's work.
Michael Keppler: I have known Dyrk Vieten for a very long time, and we share a close relationship of trust. Therefore, we have found the right partner in fund management with Lingohr Asset Management GmbH to successfully carry our strategies into the future. The management will continue to achieve excellent results through an established value approach.
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