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By Javier de Berenguer, investment manager and fund selector at Spanish insurer MAPFRE Gestion Patrimonial.
Uncertainty continues to dominate the markets, which in recent years have experienced it all: volatility, inflation, shifts in monetary policy, geopolitical tensions, and more. In this context, investors face the challenge of finding strategies that allow them to navigate successfully through an increasingly complex and dynamic environment - and value investing seems to be regaining followers. But is this bet on value really materialising?
It's not so much that value investing is making a comeback, but rather that there is no longer the strong tailwind of low interest rates that once favoured the growth or expansion-oriented investment style. However, that does not mean there is a clear trend toward this style. Value is indeed performing better in relative terms, but it's not entirely true that it's doing much better than growth - it depends on where you look.
What value-focused managers have traditionally looked for are stocks that are not currently favoured by the market - whether due to structural issues or simply because they've been overlooked - but now they're going much further. In that lost decade, many value-focused managers took the opportunity to transform and adapt to the new times. They no longer focus solely on whether a company is trading at a deep discount to its intrinsic value, but also on whether there...................... To view our full article Click here
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