Berenberg's Born: Lockdown winners will continue to flourish once value rotation ends

Good outlook for e-commerce companies

Investors will focus on underlying fundamentals once the short-term vaccine trade has run its course, leading a further outperformance of growth through 2021 and beyond, according to Berenberg's Matthias Born.

The value factor continued a decade-long underperformance against its growth counterpart through 2020, as cyclicals felt the effects of global lockdowns brought on by the coronavirus crisis. The MSCI World IMI Growth index fell by 23.2% between 19 February and 23 March, as countries grappled with the spread of Covid-19, versus the MSCI World IMI Value index's 30% slip. Out for the count? Brexit deals hefty blow to the City but industry is ready to fight back That trend continued through the sharp recovery seen, with returns for the Growth and Value components of the MSCI World IMI ...