Tocqueville Asset Management is an investment management firm known for its long-term contrarian value investing approach. Founded in 1985, Tocqueville has over 30 years of experience investing in undervalued securities and providing clients with strategies to meet their investment objectives. This article provides an overview of Tocqueville’s key investment strategies and approach.
Tocqueville’s investment philosophy is centered around contrarian, bottoms-up security selection and a long-term time horizon. The firm prefers to invest in temporarily unpopular and overlooked companies trading at discounts to their intrinsic value. Tocqueville’s patient approach allows the underlying value of investments to be realized over full market cycles.
Some of the main investment strategies offered by Tocqueville include:
Tocqueville Fund – A Focused Long-Term Equity Strategy
The Tocqueville Fund is Tocqueville’s flagship mutual fund launched in 1987. It exemplifies the firm’s contrarian, long-term value approach by investing mainly in stocks of U.S. mid and large cap companies.
The fund takes concentrated positions in around 50-75 securities identified as high quality, temporarily out-of-favor companies. The long holding periods and low turnover allow for the upside potential to be captured.
The Tocqueville Fund has outperformed its benchmark, the S&P 500 Index, over the past 1, 3, 5 and 10 year periods.
Tocqueville Opportunity Fund – Taking Advantage of Special Situations
The Tocqueville Opportunity Fund aims to generate long-term capital appreciation by investing in special situations, such as corporate restructurings, turnarounds, mergers and spin-offs.
Launched in 1994, the fund invests primarily in stocks and other securities that may benefit from events such as mergers, acquisitions, asset sales and other divestitures. It has the flexibility to invest across market caps and sectors.
The fund managers utilize bottom-up fundamental analysis to identify investment opportunities with asymmetric risk/reward profiles. The fund has outperformed the Russell 2500 Index over the 1, 5, and 10 year periods.
Tocqueville Gold Fund – Accessing Gold’s Diversification Benefits
The Tocqueville Gold Fund provides investors exposure to gold and precious metals mining stocks. Gold can be an effective portfolio diversifier, especially during times of uncertainty and market volatility.
Launched in 1998, the fund aims to generate long-term capital appreciation by investing in gold mining and exploration stocks globally. The managers utilize bottom-up analysis to select high quality companies with attractive valuations and growth potential.
The fund has significantly outperformed gold bullion and gold-focused ETFs over the past 1, 5, and 10 year periods.
Tocqueville International Value Fund – Investing Abroad
The Tocqueville International Value Fund provides exposure to undervalued international stocks. Launched in 2009, the fund invests primarily in equities of companies located outside the U.S., including in emerging markets.
The fund managers utilize a bottom-up, value-driven approach to identify temporarily unpopular businesses abroad with strong fundamentals trading at discounts. The long-term time horizon allows international investments to realize their intrinsic value.
The fund has outperformed the MSCI EAFE Index benchmark over the past 5 and 10 years.
Tocqueville Phoenix Fund – A Private Investment Partnership
The Tocqueville Phoenix Fund is a private investment partnership available to qualified investors. It was launched in 2006 to preserve capital and generate long-term growth using Tocqueville’s proven contrarian approach.
The fund invests primarily in publicly traded equity and fixed income securities. It aims to uncover underfollowed and contrarian opportunities across sectors and geographies.
Since inception, the Phoenix Fund has significantly outperformed global equity markets with lower volatility.
In summary, Tocqueville Asset Management offers various mutual funds and private partnerships catering to long-term investors seeking to generate alpha through contrarian, value-driven security selection. Tocqueville’s patient, bottoms-up approach combined with a disciplined sell strategy has led to consistent outperformance across its flagship offerings. For those looking for an experienced investment manager with a proven track record, Tocqueville presents an attractive option.