Buyback USA

Fund Investment Objectives

The PV Buyback USA Fund, launched in June 2011, is a long-only fund focused on small and mid caps listed on the US equity market. It invests in companies announcing share buyback programs to take advantage of an undervalued stock price. To identify those firms where the repurchase is most likely motivated by undervaluation, the Fund has developed a systematic approach. Fund managers are highly experienced and have a strong track record in developing and implementing this investment strategy. The Fund is a Luxembourg SIF managed by DIMlux. It holds circa 30 positions with a portfolio turnover of circa 0.3 times per year. Its reference index is Russell 2000. Companies buy back shares for many reasons e.g.: EPS enhancement, Capital structure modification, Lack of growth opportunities. However, some of them repurchase shares when confident that their stock is undervalued; often after market overreactions to bad news. To take advantage of this situation, the Fund managers have developed a methodology to identify stocks where the repurchase is driven by an undervaluation. Stocks are picked based on a subset of in-house criteria and held for circa 3 years. Based on academic studies, this methodology allows investors to earn excess returns adjusted for risk and style of, on average, 15 % per year. Minimum Investment is in EUR.