Podcast Appearance: 'Value: After Hours' with Andrew Wellington
Published On, March 3, 2025
Click Here for Important Disclaimers
Episode Overview – March 3, 2025
Andrew Wellington joined Tobias Carlisle and Jake Taylor to discuss Lyrical's approach to finding what Lyrical calls "gems amid the junk," companies trading at deep discounts to the S&P 500 that have still compounded earnings faster than the broader market. In Lyrical's view, these stocks aren't broken; they're just ignored, misunderstood, or lack clear peers for the market to value them against.
Andrew walked through the growing disconnect between the S&P 500's cap-weighted and equal-weighted valuations, a significant premium with no earnings growth to justify it, and runs the math on what convergence could mean. He also explained why the large cap value indexes are so poorly constructed that they hold the vast majority of stocks in the Russell 1000, making them a core index in disguise. The conversation covers Lyrical's avoidance of cyclical businesses, why downturns are largely irrelevant to intrinsic value, and how the same process the firm runs in the US has been applied to developed international markets. Andrew also reflects on his early career at Pzena Investment Management and the foundational skills he built there.
“We call them the gems amid the junk, companies with earnings growth as good or better than the S&P 500, but still trade at huge multiple discounts.”
— Andrew Wellington
About "VALUE: After Hours" Podcast
"Value: After Hours" is a podcast focused on value investing, stock analysis, and market trends. Hosted by investors Tobias Carlisle and Jake Taylor, the show features candid conversations about undervalued companies, investment strategies, and the forces shaping the markets, along with interviews and insights from industry experts. It offers a thoughtful, practical look at how professional investors evaluate opportunities and navigate the market.
Disclaimers
Lyrical disclaims any duty to update historical information included herein – which was provided as of the date of this podcast, noted above - including whether we continue to hold positions that are mentioned.
Specific investments described in this document do not represent all investments by Lyrical. You should not assume that investment decisions we include were or will be profitable. Specific investment examples are for illustrative purposes only and are not necessarily representative of investments that have been made since this podcast or in the future. A list of all prior investment recommendations is available upon request. In the interest of our clients, reporting as to positions in transition (being purchased or sold) is lagged at our discretion. Generally, securities which have not been purchased for all accounts are not reflected as held and sales of positions which remain in any client accounts similarly are not reflected.
Please see lyricalam.com/notes for a discussion of certain risks of an investment.
