Richard Simmons B. G., Opalesque Geneva:
London-based Derby Street Managers buys a selection of undervalued European and UK equities based on the capacity and quality of the business rather than the traditional relative value or low P/E and price-to-book ratios. Their selection style has paid off handsomely. In many cases, cheap securities based on traditional value metrics are of very low quality and not cash-generating, portfolio manager Richard Simmons tells Opalesque. We don t see a category called value stocks , he adds. Value is really the philosophy of buying things for less than their true worth, whether they are old school value e.g. low P/E for a steady business, or what is sometimes called growth . An expensive stock with a high P/E or a high relative P/E can still be value; it is its future that counts.