Value
investing

Value investing is a time-tested and robust framework for investing in stocks, providing investors peace of mind even in volatile markets. It is based on the key principles of assessing the intrinsic value of an investment and investing only when a sufficient margin of safety exists. These principles reduce the risk of permanent capital loss while offering the potential for attractive returns. Citadel Value Fund has consistently and successfully employed a deep-value strategy since its inception in 2002.

Peace of mind

OUR RISK-AVERSE APPROACH

Investing in stocks can be a rewarding experience, even during periods of market volatility. By adopting an investment strategy based on the principles of value and margin of safety, an investor can find peace of mind. While it may not eliminate day-to-day market fluctuations, value investing offers a structured and risk-averse approach to investing in stocks.

Value

KNOW YOUR INVESTMENT

Protecting your capital when investing in stocks requires knowledge about the value of the underlying companies. This intrinsic value often differs from stock prices, but is generally more stable than stock prices suggest. Short-term price fluctuations often reflect emotions rather than company fundamentals. Value investors with an understanding of intrinsic value may even benefit from price volatility.

Margin of safety

REDUCE INVESTMENT RISK

Investing with a margin of safety means purchasing stocks well below their estimated intrinsic value. This offers protection against permanent capital loss while increasing the potential for attractive returns. Value investing focuses on identifying undervalued companies rather than predicting short-term price movements or stock market sentiment.

Citadel’s Value Strategy

Consistent and dedicated

Citadel Value Fund consistently employs a deep value strategy focusing on a company’s intrinsic value through in-depth research. Avoiding market speculation, investments are only made when a significant margin of safety exists, regardless of index, sector, or geographical factors.