We’ve launched a new investment firm called Acquirers Funds® to help you put the acquirer’s multiple into action.
Our investment process begins with The Acquirer’s Multiple®, the measure used by activists and buyout firms to identify potential targets. We believe deeply undervalued, and out-of-favor stocks offer asymmetric returns, with the potential for limited downside and a greater upside.
The returns to deep value are potentially realized in two ways:
- First, through mean reversion in the underlying business, and
- Second, through a narrowing of the discount to valuation, either through the passage of time or the intervention of activists and buy-out firms.
We take a holistic approach to valuation, examining assets, earnings, and cash flows, to understand the economic reality of each company. An important part of this process is a forensic-accounting diligence of the financial statements, particularly the notes and management’s discussion and analysis, to find information that may impact investment decisions.
We implement the strategy in a highly liquid, tax-efficient, capital-efficient structure.
Click here to learn more about our investment firm.
See Our Deep Value Stock Screener
We identify the 30 best deep-value opportunities right now in all US and Canadian stocks and ADRs (excluding financials and utilities) using The Acquirer’s Multiple®. Choose from four universes: Large Cap 1000 (free), All Investable, Small and Micro Cap and Canada All TSX.
Click here to see our Deep Value Stock Screeners.
Read The Acquirers Multiple® Book
Acquirers Funds® is guided by the strategy described in the book The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market is out now on Kindle, paperback, and Audible.
Listen to The Acquirers Podcast
Our The Acquirers Podcast we talk to value investors about how they find undervalued stocks, deep value investing, hedge funds, shareholder activism, buyouts, and special situations.
We uncover the tactics and strategies for finding good investments, managing risk, dealing with bad luck, and maximizing success.
Click here to listen to The Acquirers Podcast.
Congrats on the new funds! I was checking out the ETFs and looking at the holdings and while I’m sure you can’t talk too much about the fund holdings, I was interested to see some (a lot) of financials. I am trying to get a handle on how you deal with financials. I noted that it seems like you exclude financials and UTEs in your screener (and as you know EV ratios usually don’t make a lot of sense with these entities). Happy to be directed to a post (or chapter of Toby’s book). Thanks.
I read that the acquirersmultiple is not a suitable metric for financials. Yet the fund’s portfolio contains a lot of financials. Could you please elaborate on this? What metric is used for the financials?
We use a combination metrics better suited to financials, and undertake a full valuation and forensic due diligence process.
Is there a book or article in the making that explains this new “combination of metrics” approach? How does this new model, the full valuation, and the forensic accouting relate to the “simple models beat experts” idea? Does this new undertaking and the lack of updates on the acquirersmultiple.com performance mean the acquirersmultiple is not performing anymore?
I bought quantitative value, deep value and the acquirersmultiple book. I invested money based on the acquirersmultiple and I am very confused now.
Is the acquirersmultiple.com approach still a valid approach to investing?
The acquirer’s multiple is best for industrials. There’s no inconsistency. To include financials in the fund we use a different metric, but it needs to be comparable on a like-for-like basis to the industrials, so it’s a combination metric. I’ve always said the “business owner” approach is completely valid, but harder to do. I am highly aware of the potential for behavioral errors, so have a disciplined process that includes some additional steps with limited discretion.
Congratulations on the new fund, I’m looking forward to following it in addition to your Acquirer’s website/blog/Podcast. It was super interesting to see the list of shorts in there as well. Is it possible, and have you considered creating/posting a screener that identifies possible shorting opportunities in the same way the screener identifies long opportunities?
Thanks a lot, and please continue to publish all of the great content!
Hey I just finished reading The Acquirers Multiple for the first time and it was really something. Super Interesting and I would love to read more of your material
Looking forward to learn deep value investing