Quality: Because it is worth it

It does not just mean growth

As many a fund manager will know, one of the most regular questions asked of them is whether they would classify themselves as a ‘growth’ or a ‘value’ investor.

We believe this overlooks a third style. This elite group encompasses both holdings which may be classified at times ‘value' but more often ‘growth', namely ‘quality'. Too often ‘quality' is mistakenly thought of as synonymous with ‘growth'. Recession looms over markets in 2023 Being able to identify a quality company can lead to remarkably different returns versus the global stock market over time. Annualised factor outperformance over time There have been many attempts to define what exactly constitutes a quality company over the years, from Fama & French to Benjamin Grah...