About us
Our Investment Philosophy
The Aegis investment philosophy is predicated upon finding value in the equity markets through rigorous fundamental research. The small cap segments of these markets are often inefficient, with market values at times deviating substantially from intrinsic values. Market inefficiencies can be exploited by patient, long-term oriented, contrarian investors willing to perform detailed analysis of company-specific fundamentals over time to gain a deep knowledge of a company’s value. A strong grasp of each investment’s fundamental value gives the manager the conviction to buy and hold shares of companies when market sentiment is poor and emotion is impacting the investment decision of other investors. Particular emphasis is placed on purchasing equities trading cheaply relative to the value of a company’s assets, with the goal of maintaining robust down-side protection.
Our philosophy is premised on the basis that economic conditions and the resulting company valuations tend to be cyclical. Investor emotion can often exacerbate equity pricing volatility, creating the opportunity for patient investors with a detailed understanding of company fundamentals and a long-term outlook to exploit price movements driven by investor emotion. The manager seeks to buy when valuation levels are low, sentiment is poor and other investors are selling irrationally, and seeks to sell when valuation levels have recovered as investor excitement and complacency are nearing a peak.
Key to the employment of the philosophy is a contrarian, patient, long-term mindset and a systematic, fact-driven, bottom-up investment process that seeks to methodically and dispassionately evaluate a company’s long-term underlying fundamentals while limiting the emotional influence of transitory business challenges or daily trading fluctuations of its stock.
Key Investment Personnel
Scott Barbee, CFA
Mr. Barbee has been Portfolio Manager of the Aegis Small Cap Deep Value strategy since its inception in 1998 and is the controlling shareholder of Aegis Financial Corporation. Prior to Aegis, Mr. Barbee worked as an analyst covering oilfield services at Simmons & Company, and later as a generalist with deep value advisor Donald Smith & Company. Mr. Barbee holds a B.S. degree in Mechanical Engineering and a B.A. degree in Economics from Rice University and received his M.B.A. from the Wharton School at the University of Pennsylvania.
Justin Harrison, CFA
Mr. Harrison joined Aegis in 2018 with over a decade of experience in asset management, primarily as a Partner & Senior Analyst with Ramsey Asset Management. His experience includes investing in public equity markets for family offices and hedge funds. Prior to investing, he spent over ten years in the technology industry, where he held senior operational roles including VP & Interim CFO. Mr. Harrison also oversees business operations and serves as CCO of Aegis Financial. Mr. Harrison received his B.S. in Mechanical & Aerospace Engineering from Cornell University.
Contact us:
Aegis Financial Corporation
6862 Elm Street, Suite 830
McLean, VA 22101
703-528-7788