Deep value quantitative investing, ft Tobias Carlisle

Quantitative investing centers on the efficacy of value-based metrics, specifically enterprise value to EBITDA, over traditional quality-focused indicators like return on invested capital. Tobias Carlisle, manager of the Acquirers Funds, argues that deep value strategies—buying beaten-down assets that are mean-reverting—consistently outperform the market. He emphasizes that while quality metrics like margins and cash flow are useful for screening out potential fraud or financial distress, the primary driver of long-term returns remains deep undervaluation. By utilizing a rules-based approach that incorporates share buybacks as a signal of management confidence and capital discipline, investors can avoid the behavioral biases that lead to poor decision-making. Ultimately, successful investing requires a long-term commitment to avoiding permanent capital loss, prioritizing companies with durable business models, and maintaining a disciplined, systematic process to capture market anomalies.