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Theoretical foundations

Founding reseaRch papers

In the early 1990s, and later in 2013, William Higgons studied these 4 articles that are behind the Value investment strategy of the fund Independence and Expansion Sicav

CHEAP-AND-CHEERFUL (pdf)The Economist - 1993

“ This popular article, published in March 1993, has founded my investment strategy.”
W. Higgons

CONTRARIAN INVESTIVIENT, EXTRAPOLATION, AND RISK (pdf)Joseph Lakoniskok, Andrei Shleifer, Robert Vishny,
Faculty Working Paper 93-0128, University of Illinois

“ This working paper has undermined the theory of market efficiency and is the foundation of the CHEAP-AND-CHEERFUL article.”
W. Higgons

THE CROSS SECTION OF EXPECTED STOCK RETURNS (pdf)Eugène F. Fama et Kenneth R. French,
published in the Journal of Finance, June 1992

“ The father of modern portfolio theory (Eugène F. Fama) questioned the usefulness of beta and highlighted the outperformance of Small Caps.”
W. Higgons

THE QUALITY DIMENSION OF VALUE INVESTING (pdf)Robert Novy-Marx,
Simon. Rochester. edu, 1-54

“ This research paper by Novy-Marx demonstrated the importance of the return on invested capital in Value investing. The return on invested capital was already an investment criterion of Independence and Expansion. This article confirmed its relevance.”
W. Higgons

Implementation by
Indépendance et Expansion

William Higgons implemented this theoretical foundations to the fundIndépendance et Expansion Sicav adding two criteria:

  • return on invested capital must be higher than a threshold
  • operating margin must be higher than a threshold

Following articles detail Mr Higgons investment strategy.

Go For Value (pdf)

Profession Investisseur Value (pdf)

In addition, Williams Higgons teaches Value Investment courses to future SFAF graduates.

Formation SFAF - Gestion Value (pdf)