Value Revisited Series
The underperformance of value has become one of the most prevalent narratives in investing, but conventional accounts are oversimplified. Read our three-part series!
In the second installment of the three-part series, Value Revisited, Acadian’s Approach to Value Investing, we touch on the following points:
Although value is widely discussed as if it were a one-dimensional and well-defined concept, it is implemented in myriad ways that generate materially different investment outcomes. Acadian’s approach to value investing reflects three key principles: 1) the value premium arises from investors’ behavioral mistakes, 2) value should be implemented within a multifactor process, and 3) value implementations should be nuanced and evolving. While we believe that refined approaches will improve long-term investment outcomes relative to rudimentary implementations, investors should expect them to episodically underperform.Read More
In the conclusion of our three-part series on value, we assess the outlook. We see no reason to abandon value as a long-term component of a multi-factor investing approach. Tactically, we advocate maintaining a value allocation in light of the market’s current “one-factor bet on growth.”Read More
Reach out to us to listen to the full webinar on the viability of value investing! Using a systematic lens, we will: • Clarify the fundamental and behavioral drivers of value’s performance • Offer a coherent perspective on the outlook for value • Highlight the multifaceted and evolving nature of value concepts and investing approachesContact Us