AXIA (Value)

Investment Philosophy

Finding VALUE in "Low Expectations"

  • The equity market is a market where the future value of companies is traded. The price of a high growth stock tends to be overvalued (premium added) relative to its inherent value and its profitability. But very few such companies are in the end able to meet the market’s expectations. In many cases, their premiums decay following disappointing results.
  • On the other hand, market players do not expect much from low growth / less profitable companies, and they are usually priced at a discount to their inherent asset value or profitability, reflecting subdued future expectations. However, at the same time they are more likely to surprise on the upside. If a company’s growth accelerates or profitability improves as a result of effective restructuring, revival of a business unit, or expansion into a successful new business, investors may benefit not only through discount decay, but also from premium acquisition.
  • We believe that investing in companies that are still undervalued, but are making persuasive efforts to restructure their businesses, expand into new businesses, or becoming more profitable, is the most effective approach in the long term.

Investment Process


Based on three valuation factors, (1) Stock (Assets), (2) Flow (Earnings), and (3) Risk (Investment Risk), corporations are objectively evaluated. The degree of under-valuation is measured by the use of a proprietary valuation-scoring model, called the “Value Score”, which serves as a base for the creation of the “Value Stock Universe”.


Portfolios are constructed from the “Value Stock Universe” considering various stock-selection criteria for investment.


The "Value Score"

Stock valuation indices such as P/E, P/B, and dividend yields, are indicators that are being calculated. Yet, none of these indices takes into account factors such as the reasons for the discount, the past trend, or the future development.

In order to create an investment universe and to bring about appropriate decisions, AXIA considers companies’ adequate P/E and P/B for the evaluation, based on the given facts. The "Value Score" measurement process was developed to convert considerable amount of information into objective numerical data. All stocks are analyzed and scored with each of the three approaches, and a total score is calculated to create the Value Stock Universe.


  • This page is directed for professional investors only.
  • The purpose of this page is to express the general investment method of the strategy, and not intended for offering or soliciting any new subscriptions.
  • The information contained in this material is prepared based on a representative fund of the strategy.
  • All data used herein are that of the past and do not guarantee future returns.
  • Although the information used on this page has been obtained from public sources which are considered to be reliable and credible, T&D Asset Management does not guarantee the correctness or the credibility of such information.