Richard Simmons B. G., Opalesque Geneva: London-based Derby Street Managers buys a selection of undervalued European and UK equities based on the capacity and quality of the business rather than the traditional relative value or low P/E and price-to-book ratios. Their selection style has paid off handsomely. "In many cases, cheap securities based on traditional value metrics are of very low quality and not cash-generating," portfolio manager Richard Simmons tells Opalesque. "We don't see a category called 'value stocks'," he adds. "Value is really the philosophy of buying things for less than their true worth, whether they are old school 'value' e.g. low P/E for a steady business, or what is sometimes called 'growth'. An 'expensive' stock with a high P/E or a high relative P/E can still be value; it is its future that counts."