Investing strategies

Portfolio managers describe their investing approaches

December 27, 2023

Portfolio managers of several Vanguard funds—from value-focused to broad market index portfolios—shared their thoughts in Q&As during 2023 on how they view the markets, the opportunities available to investors, and what makes a difference. 

Uncovering long-term value in a short-term market

Two portfolio managers of Vanguard Windsor II Fund, George Davis and Scott McBride of Hotchkis & Wiley Capital Management, discuss how the market’s short attention span can help give value investors an advantage. Finding stocks that are trading at a discount to their worth is possible in part, they argue, by staying focused on company valuations and their risk exposure.

The Belgian lawyer who manages billions in international assets

As an index fund portfolio manager, Christine Franquin of the Vanguard Equity Index Group believes “human-side decisions” are a key part of a data-driven investment approach. She also talks about the evolution of Vanguard’s international trading desk, the advantage gained from a feet-on-the-ground trading approach, and the technological advances that may revolutionize the way investment managers navigate markets.

How experts identify small-/mid-cap growth leaders

D.J. Fitzpatrick and Paul Elia of Wellington Management Company, co-managers of a portion of Vanguard Explorer Fund, talk about the challenges faced by investors in small and medium-sized companies and how sector analysis helps identify strong candidates to invest in. 

Pzena dives deep for value opportunities (Video: 4:42)

Building a portfolio of good businesses requires a mixture of art and science, according to Caroline Cai, CEO of Pzena Investment Management and a portfolio manager of the firm’s portion of Vanguard Emerging Markets Select Stock Fund and Vanguard Global Equity Fund. In a video interview, she says a crucial factor is having a decision-making process where team members have equal voting power on buy and sell decisions.

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Notes:

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Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.

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