23.10.2024Value Intelligence Conference 2024

"Value-oriented and sustainable equity investment in times of paradigm shift"

This year’s conference was hosted in collaboration with Thorsten Hens from our department. Experts explored the latest empirical studies, investment strategies, and innovative approaches to asset allocation. Distinguished academic speakers and value investors from around the globe came together to discuss the theme “Value-Oriented and Sustainable Equity Investment in Times of Paradigm Shift.”

Tailored for institutional fund investors, the event featured valuable presentations that provided actionable insights. We were honored to have Prof. Thorsten Hens deliver a keynote on “Value Investing & ESG – A Match Made in Heaven.”

Thank you to everyone who participated and contributed to the success of this event!

Interview

Prof. Hens, how does this year's theme, "Value-oriented and sustainable equity investment in times of paradigm shift," reflect current trends in the investment landscape?

Value investing is an old but very successful investment strategy – the most famous value investor, Warren Buffett achieved 20% p.a. over 70 years! The idea of this conference was to confront value investing with new trends like sustainable investing.

Can you please elaborate on your role at the event and your keynote speech? How does your expertise in 'Value Investing & ESG' contribute to the conference's objectives?

Since 15 years the VIC brings together academia and practice. I have been the co-organizer from the very beginning since my research on evolutionary finance gives a scientific foundation for value investing. Now for the first time it took place in Zurich. In my keynote speech I pointed out that usually value investors prefer “old” economy stocks which according to the current ESG-ratings fall behind the tech-stocks. On the other hand, I referred to a recent paper showing that investing based on these ratings might be bad for the environment. What really helps is engagement and this is one strength of value investors like Warren Buffett. Thus, I suggested value investors should engage more for the environment.

What unique insights did institutional fund investors expect to gain from the mix of academic speakers and value investors presenting at the conference?

Institutional fund investors benefit from the mix between academia and practice because academia is pointing out to new important aspects that they usually not know about because they are too busy with day-to-day duties. One of these aspects is sustainable investing. Another is the market view. On the conference many speakers asked whether the stagflation of the seventies is again ahead of us.

How does the conference aim to bridge the gap between theoretical research and practical application in value investing strategies?

Academia is more innovative – but many of these new ideas might not be realizable in practice. Thus, both benefit from a discussion.

With the event taking place in Zürich this year, how do you see this location influencing the discussions on global asset allocation and investment processes?

The financial marketplace in Switzerland has positioned itself in sustainable finance – here we are world leaders, as for example the initiative of sustainable finance from our department of finance shows. But there only exists a few value investors in Switzerland. Both claims are relative to the US. We had many value stars from the US (academia and practice) attending the VIC. They were enthusiastic about it and will spread the word at home making little Switzerland better know in the dominating nation of the world.