In short: The satellite deep-value fund and, he says, unusual: "there's not a lot of funds that concentrate that heavily in deep value." Top-down by country — rank ~45 countries on CAPE plus cash flow, dividends and book, take the cheapest 12–15 (high-single-digit to low-double-digit CAPEs "remember the US is 42 today"), then the top 10 stocks from each market's top 30 by market cap, rebalanced once a year. Launched 2014 and spent six years losing to the US; "still wicked cheap compared to the US."
Most value funds pick cheap companies. GVAL picks cheap countries. Cambria ranks about 45 national stock markets on long-run valuation — chiefly the CAPE ratio, which averages a market's inflation-adjusted earnings over ten years so a single boom or bust year can't distort it, cross-checked against cash flow, dividends and book value — then buys the cheapest dozen or fifteen, taking ten large stocks from each. It rebalances only once a year and sometimes makes no trades at all.
The resulting basket sits at CAPE ratios in the high single digits to low teens, against the US at roughly 42, and countries usually only get that cheap after falling 50–80%. Faber is candid about the cost of this discipline: the fund launched in 2014 and spent its first six years being beaten by an American market that "creamed everything." The bet is simply that starting valuation eventually asserts itself — the same claim as his CAPE-40 statistic, applied in reverse.
43:35So sorry to be the Grinch. We got a question on GVAL, what's the strategy? So GVAL is based on another book we wrote, was basically like, hey, let's break the market cap link and instead of investing globally and not doing bottom up, let's do top down and let's pick countries and we'll take the top third, I think, of countries out there based on valuation.
Nothing matches this filter.
Verbatim excerpts from the public transcripts (auto-pulled at each mention's timestamp, lightly cleaned). Timestamps link into the video; "source page" opens that commentator's full analysis at this row. Click a mention's header line to expand it (one open at a time). For personal study — not investment advice.