It is not restricted to the massacred values

Travel form the youth, but also managers. Fabrice Bay, now Director of management in DWS Investments in Paris, was in any case to good school. After beginning his career in management in Stockholm, it has stops in Paris between 1993 and 1995, before returning for six years in London and four years in Boston. A year and a half, he decided however to re-cross the Atlantic to return to Paris.

Its trunk to America, he brings strong beliefs in management, defining itself as a supporter of the "core" management, so-called "opportunistic" in French. "This mode of management arise in real alternative styles"growth"and"value"." This approach is centred on the notion that any publicly traded company has an intrinsic value that can be surcotée or delisted by the market at a given time. "The objective is to detect these excess of valuation, as well from the universe of the values of growth performance values," he explains.

Logically, its investment approach therefore is to examine business from all angles (risk-taking, competitive advantages, return on capital employed, operational profitability) to find their true value. In a second time, Fabrice Bay seeks to transcribe this value judgment to determine the potential of growth. There, he strives to multiply angles, juxtaposing quantitative and fundamental analysis. In its pan-European research, he seeks in particular the gaze of his colleagues of the network of Deutsche Asset Management, which bring their local expertise in return for his advice on the Parisian market.

On this basis, Fabrice Bay composed its portfolio by selecting values in each case, without macroeconomic scenario set, without geographical or sectoral bias and even without a priori on the direction of the markets. And in managing "core" enthusiast, he apprehends the selected values by going beyond the style of management to which they relate. To accompany the adjustment of the insurers, it thus retains AGF highlighting the sector recorded growth supported by forethought products and life insurance.

It is the same for the Syngenta agrochemist, seen as a cyclic value, whereas the regularity of its risk-taking and profitability are unrelated to the rest of the chemistry. He also refers to Vivendi Universal, that the market essentially treated as a value of assets although the title is still embedded among the values of growth in the indices. "The apartments sales scenario, which has long had courses, is less and less convincing." "But, with or without transfers, the risk-taking to straighten significantly on bearing segments, that does not reflect the current valuation," considers.

In pursuit of poorly appreciated values of the market, Fabrice Bay draws much of its ideas among the excesses of pessimism. It extracts including Telefonica, which suffers from corrections indiscriminate in the telecoms sector, or Nokia, sanctioned on fears of erosion of margins. It also highlights E.ON, believing that the market focuses primarily on the risk related to the integration of Endesa to the point of forgetting the return on investment of the principal activity.

It is not restricted to the massacred values. Among the ten most representative values of his approach, Fabrice Bay particularly distinguished Umicore in commodities, believing that his rehabilitation is completed, or cements French. "Publications of third-quarter results have sent signals contrasting to the market, between the slowdown in the United States and restart in Europe." This is why I tend to focus on companies that have a "pricing power" quite high, as cements French, which is positioned on markets where activity remains sustained and relies on products that the Group may face possible inflationary in the cyclical sectors.

Fabrice Bay rebounds on positive themes, such as mergers and acquisitions. "The movements of consolidation have not declined as rates although they back historically remained low, but also because that investment funds are very active on the equity markets." I favour therefore targets of OPA, as Hellenic Exchange, the Athens Stock Exchange, which could be absorbed into the movement of the concentration of the financial markets, or Collins Stewart, a regular British brokerage firm cited in the rumours as "prey" as "predator". I have however retained these companies insofar as they are attractive investments irrespective of their speculative aspect. Awards, for example, benefit from a monopoly to identify any high operating margins by taking advantage of the growth of flows.