"Is (Systematic) Value Investing Dead?” was named a winner of an Outstanding Article award in the Journal of Portfolio Management’s 2022 Bernstein Fabozzi/Jacobs Levy Awards. Selected by the readers of the Journal of Portfolio Management, the awards recognize innovating and compelling research that contributes to the theory and practice of portfolio management. Read more from the Journal of Portfolio Management.
Value investing is the age-old investment strategy that involves buying securities that appear cheap relative to some fundamental anchor. For equity investors that anchor is typically a measure of intrinsic value linked to financial statement variables. Recently, there has been much written about the death of value investing. While undoubtedly many systematic approaches to value investing have suffered recently, we find the suggestion that value investing is dead to be premature. Both from a theoretical and empirical perspective, expectations of fundamental information have been and continue to be an important driver of security returns. We also address a series of critiques levelled at value investing and find them generally lacking in substance.