Highlights From Zeke Ashton At The Value Investing Congress

Zeke Ashton spoke at the Value Investing Congress and discussed some out of favor sectors to the value investors in the audience. Ashton mentioned property and casualty insurance, asset managers, and retailers as being particularly out of favor right now. Ashton said that on a screen he ran, that companies in the p&c sector, including reinsurers, 56 of 82 were trading at less than book value. He noted that risks are getting bigger to the insurance companies, and the group needs to be compensated for the risks. One name Ashton singled out was Fairfax Holdings, which trades at a modest premium to book, and could eventually trade to 1.6, 1.7 times book value. He also mentioned Aspen Insurance Holdings Limited AHL, which is trading around $30. Book value is $37, and he sees it going to $40, on a basis of 1.15 times book. He went on to say that asset managers are out of favor, as equity outflows continue to go over inflows. Anytime you can buy an asset manager at less than 3% assets under management, buy it, and many of them are. He mentioned MVC Capital MVC as a pick in this sector. Ashton concluded by saying that retail is out of favor, along with anything consumer. He likes BHBH in the retail space, as the CEO is a Warren Buffett disciple.