Deepvalueideas.com is written by Jan Philipp Woeltjen.
I’m a value investor from Germany. To achieve consistently superior risk adjusted returns, one has to exploit inefficiently priced opportunities. The highest chance of finding those is by looking for them in off-the-beaten-track markets, emotionally driven markets and amidst selling pressure arising from special situations. I concentrate on deep value investments. Net-nets constitute a large percentage of my portfolio. Investing decisions in this basket are primarily based on quantitative factors, striving to combat the “broken-leg problem”. These factors, in turn, are based on academic research, long-time experience of other investors and my own extensive backtesting. The other part of the portfolio is made up of special situations and/or ideas with a higher conviction level. Special situations, I’m interested in, are mainly those popularized by Greenblatt, including spin-offs, bankruptcies, and merger securities. At the moment, I also find attractive opportunities among preferred shares of South Korean companies. The analysis in these situations is more sophisticated.