Value factor strategies ripe for revival, quants say
Stocks rated for value are historically cheap compared with growth stocks, evidence shows
Equity value strategies are in the depths of their fourth worst drawdown in a hundred years, but quants say the stocks they favour are so cheap buyers should not be put off.
Stocks captured by the value factor, meaning those with high book value to price or similar ratios, are at their cheapest levels in recent history compared with other stocks. And cheapness – as the name suggests – is the main driver of value strategies’ performance, experts say.
“In all previous occurrences value stocks
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