Where the Value Investing Strategy Still Works
This week, I wrote an opinion piece for the Financial Times on how the value factor has performed better in the developed ex-US than here in the United States. I've included the first two paragraphs and a link to the full piece below.
Where the Value Investing Strategy Still Works
Losses have been brutal in US but strong gains have been made internationally since depths of Covid pandemic
Trailing performance has not exactly been a selling point for value investment strategies in recent memory. As the last 15 years unfolded, a wave of bad performance has seen allocators shift remorselessly away from the strategy of investing primarily at undervalued companies to more growth-orientated approaches.
This has hollowed out the value investing community. As far as I can tell, the universe of value managers has shrunk to the aged whose records pre-2009 are strong enough to keep investors loyal, quants who trust the long-term data and cranks who are weirdly obsessed with natural resources stocks.