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.
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.
Thinking Strategically About a Value Allocation to Emerging Markets
A valuation-based approach has worked better in emerging markets than the developed world.