Time to Look for Value in the Emerging Markets?
As economies gradually reopen, valuations look favorable in emerging markets relative to the rest of the world.
The Value Cycle is Intact
Inflation, its effect on the market, and its implications for our portfolios have been frequent topics in recent client conversations.
What’s Your Value?
Being in the value index doesn't necessarily make it a true value investment. Indices don't consistently differentiate between value and growth styles.
The Utility of ESG Scores
There is a stronger relationship between investment performance and a company’s potential for ESG improvement as compared to the company’s ESG score.
Feeling Underexposed? Value in Emerging Markets
Value in emerging markets has produced superior returns to growth over time and better relative returns vs. developed markets.
Value Investing Reigns in Emerging Markets
Value investing has proven to be an extremely reliable approach, outperforming 78% of the time based on rolling five-year periods since 1992.
Earnings Growth and Momentum
Value has recently trounced the broader stock market, and we believe there may be plenty of support for the value rally to continue.
Thinking Strategically About a Value Allocation to Emerging Markets
A valuation-based approach has worked better in emerging markets than the developed world.
Energy Investments in a Zero-Carbon World
Oil and gas companies can continue to thrive as the world moves toward decarbonization and the expansion of renewables.
The Beginning of the Value Cycle?
Value is finally starting to outperform, with deep value leading the way. But the opportunity is far from behind us.
Giving Credit: Emerging Markets Banks
At current valuations, banks in the emerging world present compellingly asymmetric investment opportunities.
Catalyst for Change: Disruption
Conventional wisdom says technological innovation hurts existing franchises. Yet strong incumbents adapt.
Catalyst for Change: Growth Expectations
Another potential catalyst for the shift from growth to value: (Irrationally) exuberant growth expectations revert to normal.
Catalyst for Change: Interest Rates
If interest rates stop falling (even if they don't rise), we believe multiple expansion for growth stocks will end.
Catalyst for Change: Recession
Value stocks have historically outperformed on average both during and subsequent to a recession.
Catalysts For Change
Consider these four possible catalysts that could already be signaling a shift from growth to value.
Questioning Conventional Wisdom on Risk & Return
How should we measure risk? We question short-term volatility as a proxy for long-term risk.
Global Banks: Resilience in the Face of Crisis
Against the volatile backdrop of today’s economic environment, bank stocks stand out.
Volatility, Wide Spreads, and Value Stock Returns
History suggests that in times of uncertainty, investing in undervalued companies pays off long term.
Value Outperformance Following Extreme Volatility
Extreme volatility has historically been conducive to small cap value outperformance.
Value Is a Philosophy – Not a Factor
Rich Pzena discusses the difference between the value factor and value investing as a philosophy.
Recent Events Have Set up a Classic Value Opportunity
Valuation spreads between the cheapest and most expensive stocks are at or near all-time highs.
Initial Stages of Recovery
Following each of the last five bear markets, value stocks outperformed one year from the trough.
Bear Markets, Recoveries, and Value Stocks
In the midst of heightened investor fears, it's helpful to examine the historical context of recoveries.