Why is value still underperforming - and will this trend change soon?

'Plenty of false dawns' along the way

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River & Mercantile's Hugh Sergeant
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River & Mercantile's Hugh Sergeant

Value has endured a difficult decade, with an extended period of underperformance that has left the gap between valuations for highly sought-after growth names at extreme levels versus shunned value stocks.

Value has endured a difficult decade, with an extended period of underperformance that has left the gap between valuations for highly sought-after growth names at extreme levels versus shunned value stocks. Unearthing quality in unloved value stocks Investors would have to go back to the noughties to find a time when value was in the ascendency, meaning this has been no flash in the pan for growth investing but instead a sustained cycle of outperformance. There have been plenty of false dawns along the way for value, with the most recent being mid-September when it had a brief resu...

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