IVIPIntrinsic Value Investment Partners

Global asset management

Bridging price to value.

Value investing across credit and equity. We buy what the market has mispriced, put risk first, and do not use leverage.

Our approach Contact us
Margin of safety Intrinsic value Market price Time
Illustration of the value investing premise, not performance data
2009Founded
NoneUse of leverage
3Asset classes
100+Research hours per idea

Approach

A method, applied the same way every time.

Price is what you pay. Value is what you get.Warren Buffett

We back companies with durable competitive advantages, often when a short-term event has caused the market to misjudge what the business is worth. Eight traits guide the search.

  • Pricing power

    A niche or franchise that protects the business from competitors.

  • Surplus cash generation

    Consistent cash flow beyond what operations require.

  • Simple to understand

    Businesses we can analyze with confidence.

  • Honest, capable management

    Leaders who treat shareholders as partners.

  • Disciplined capital allocation

    Reinvestment that earns strong returns.

  • Lean cost structure

    The ability to stay competitive in a downturn.

  • Solid balance sheet

    Strength to survive difficult economic cycles.

  • Technology as an advantage

    Lower costs, better efficiency and growing sales.

Focus

Value discipline across the capital structure.

We use our knowledge of a business to express a view through the security that offers the most attractive risk and reward at that point in the economic cycle. We also pursue special situations where legal or covenant expertise gives us an edge.

Improving economy

Corporate bonds

Instruments ranked just behind bank debt in priority. Trading at a discount to par, they can offer an attractive balance of risk and reward as the economy improves.

Declining credit environment

Leveraged loans

Senior secured debt trading at a discount to par and to recovery value, which can offer an attractive balance of risk and reward when credit conditions weaken.

Robust economy

Equity securities

The lower part of the capital structure, which we find most compelling when the economy is strong.

Strategy

The 100 hour process.

Every idea moves through the same five steps before capital is committed.

  1. Source

    Internal resources, industry expertise, investment conferences, and legal and financial advisors.

  2. Screen

    Real companies with real assets, strong cash flow and undervalued pricing.

  3. Analyze

    Financials and capital structure, conversations with management and industry participants, cash flow scenarios and valuations.

  4. Decide

    Choose the investment scenario and the layer of the capital structure to own.

  5. Verify

    Confirm that every step is complete before we invest.

Extensive legal review

Legal expertise is central to how we invest.

Research

  • Rigorous research process
  • Financial analysis
  • 100 hour process

Protection

  • Preservation of capital
  • Borrowers' representations and warranties
  • Covenant analysis
  • Structural subordination

Goal

  • Capital preservation

Target portfolio composition

The mix shifts as the economy moves through its cycle.

Slowdown

Bank debt

When growth slows, the risk and reward of owning bank debt outweigh the potential gain in equities. Restructurings and bankruptcies rise.

Improving economy

Unsecured debt

Corporate cash flow and balance sheets improve, which makes unsecured debt more attractive.

Growing confidence

Equity

Companies pursue M&A and capital spending, taking on debt to drive revenue. Equity becomes more attractive than debt.

Our edge

Experience, research and risk control.

  • More than 50 yearsof finance and investment experience across the capital structure.
  • 100+ hoursof rigorous research behind every investment idea.
  • Disciplined risk limitsfocused on liquidity, diversification and capital preservation.

Culture

One firm, one standard.

Our mission is to bridge price to value. Five principles get us there.

  • Honesty

    Toward our investors and toward every team member.

  • Teamwork

    A group can achieve what no one achieves alone.

  • Excellence

    Pride in what we do and in what we deliver.

  • Accountability

    For our successes and our shortcomings alike.

  • Discipline

    The ability to say no to investments outside our focus and approach.

In the public eye

Karim Babay at the United Nations.

Remarks to youth delegates in the General Assembly Hall at the United Nations Youth Assembly, 2018.

Watch on YouTube

Team

The people behind the process.

Executive officers

  • Hubert R. Marleau

    Hubert R. Marleau

    Honorary Chairman

    Co-founder of Palos Management. Over 30 years raising capital and structuring mergers and acquisitions, with senior roles at several large investment banks and past service as a governor of the Toronto, Montreal and Vancouver stock exchanges.

  • Karim Babay

    Karim Babay

    Managing Partner and Chief Investment Officer

    Founded IVIP in 2009. Began his career at Lehman Brothers, with six years in M&A and proprietary trading. Has founded two startups, with one exit. Former chairman of the Friendship Ambassadors Foundation and former board member of the Arab Bankers Association of North America. Columbia Business School MBA. Fluent in English, French and Arabic.

Team

  • Dr. Valentin Katrandzhiev

    Dr. Valentin Katrandzhiev

    Political Analyst

    Specialist in international relations and diplomacy, and former chief expert at the Strategic Studies Department of Bulgaria's Diplomatic Institute. IVIP's political analyst since 2010.

  • Alex Rozoff

    Alex Rozoff

    Portfolio Manager

    Previously at Goldman Sachs, followed by time at a startup.

    UCLA

  • Marie Ackman

    Analyst

    Specialist in special situations investing.

    Indiana University

  • Alice Wolf

    Analyst

    Institutional sales trader, previously at Morgan Stanley.

    University of Wisconsin

  • Rohit Jain

    Analyst and Trader

    Previously an analyst in investment banking at Bank of America.

    Vanderbilt University

Board of directors

  • Charles Marleau

    Charles Marleau

    Co-founder and President, Palos Management

    Oversees fund trading and management, administration, investor relations and compliance. Economics degree from McGill University.

  • Dr. Hani Findakly

    Dr. Hani Findakly

    Director

    Over 30 years advising governments, central banks and international institutions. Former vice chairman at Clinton Group and chief investment officer at the World Bank.

  • Karim Babay

    Karim Babay

    Director

    Founder of IVIP. Former board member of the Arab Bankers Association of North America.

  • Omar Wohabe, Esq.

    Omar Wohabe, Esq.

    Partner, Wohabe Law Offices LLP

    Advises on Gulf-related investments and fund formation. President of the Arab Bankers Association of North America. Cornell Law School.

Affiliation

Rooted in the Graham and Dodd tradition.

Our reading list spans value investing, Warren Buffett, Benjamin Graham, value managers and statistical studies of investing.

  • Heilbrunn Center for Graham and Dodd InvestingColumbia University
  • Palos ManagementInvestment management partner
  • The Intelligent InvestorBenjamin Graham
  • Margin of SafetySeth Klarman

Contact

Two offices, one firm.

  • New York

    IVIP Capital, LLC
    546 Fifth Avenue, 14th floor
    New York, NY 10036
    United States

  • Cayman Islands

    Intrinsic Value Offshore, Ltd
    Campbell Corporate, 4th floor
    Scotia Center
    Grand Cayman KY1 1104
Investor inquiries info@ivipcapital.com