Value factor strategies ripe for revival, quants say

Stocks rated for value are historically cheap compared with growth stocks, evidence shows

Stocks rise

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

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: