Strategies · Core
Net Current Asset Value Effect
Buy stocks trading below net current assets (Graham’s net-nets) — a deep-value liquidation screen, not a quality compounder book.
Definition
NCAV ≈ current assets − total liabilities (variants exist). Buy when price ≪ NCAV, equal-weight a tiny book, hold a year. Most names are small, illiquid, and shrinking. Capacity is the constraint.
Why it matters
It is the original quantitative value screen. It does not scale to a $2bn product.
Case
A 20-name net-net book that is 40% Japanese micro-caps. The paper Sharpe assumed you could trade them. You could not, at size.
How to read it
Liquidity, delisting, and whether NCAV is stale. This is a cottage strategy or it is a lie.
No query has been run yet. Which is tragically normal for most knowledge systems, but we are trying to evolve past decorative databases.