In this Australian Investors Podcast episode, Mitchell Sneddon sits down with Mark Ambrose from Global Value Fund to unpack one of the strangest deep value trades of the COVID era: buying into airplane leases when global aviation looked broken.
Mark explains what deep value investing looks like when markets are panicking. Rather than making a heroic call on a perfect recovery, GVF focused on asymmetry: limiting the downside, understanding where the cash sat on the balance sheet, and working out why forced sellers were dumping assets at irrational prices. He also shares the two tests he uses on any idea: asymmetric payoff and a real edge over the seller, especially when capital is fleeing the sector.
The conversation walks through Amadeo Air 4 Plus, the structure of listed aircraft leasing funds, and why a vehicle with planes leased to Emirates, Etihad and Thai Airways could trade at such a dramatic discount. Mark also breaks down residual aircraft values, bespoke valuation work, shareholder engagement and the takeover interest that later emerged once the market stabilised.
If you enjoy real-world examples of contrarian investing, downside analysis and how skilled investors find opportunities that passive products simply cannot replicate, this episode is well worth your time.
