Articles & Insights
Investment Executive: Focus on Products  |  17 December 2019

Finding value in the value factor

Despite recent underperformance, there still may be a value premium.

Has the value factor — the tendency of value stocks to outperform growth stocks — faded into oblivion? Several recently published papers argue otherwise. The EDHEC-Risk Institute in France analyzed factor returns in the U.S. from 1977 to 2017 and concluded that value’s recent underperformance is not abnormal and occurs fairly frequently.

The analysis of macroeconomic influences suggests negative surprises over the past three years are in part a contributor to the underperformance. Read more >