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May 07 2020

Why Value Failed—Top-Down & Bottom-Up Views

  • May 7, 2020

From a top-down view, since 2003, Value’s performance has been much more closely tied to various asset markets and macro drivers. From a bottom-up perspective, we believe the change in Value’s migration behavior might be the key to its failure. We believe macro tailwinds and positive surprises are both necessary for a true Value revival.

Apr 07 2020

Factor Performance: Value Crushed

  • Apr 7, 2020

The selloff has served to amplify secular style-trends that were in place going into this debacle. Large Cap Growth has continued to outperform everything else, with the underperformance of Value stocks accelerating alongside market losses.

Mar 17 2020

Valuation Dispersions Reach 2009 Levels

  • Mar 17, 2020

The recent market turmoil has only served to exacerbate equity style trends that have been in place for years, with Value, Small Caps, and High Beta all underperforming relative to Growth / Momentum, Large Cap, and Low Volatility, respectively. 

Feb 24 2020

The King Is Dead: A Global Chartbook

  • Feb 24, 2020

Last year we published a report titled Price to Book: The King is Dead (available on the Leuthold Research website) with the objective to better understand the decade-long struggle of the value style. Our findings showed that indexes based on the Price to Book ratio have indeed lagged since 2007 but that other measures of value performed significantly better until just recently.

Oct 10 2019

The Case Of The Flipping Factors

  • Oct 10, 2019

Equity market themes have been boringly consistent of late; growth beating value, large beating small, and domestic beating international. In the factor world, Momentum and Low Volatility have been investor favorites for most of 2019 while Value resided in last place – the same old, same old. Then, something remarkable occurred on September 9th.

Sep 11 2019

Horse Trading In The Factor Zoo

  • Sep 11, 2019

Smart beta ETFs have become an immensely popular investment tool, attracting billions of dollars in AUM by providing investors with targeted exposure to factors such as Value, Momentum and Quality.  Characteristics such as these have been shown to generate alpha over time, and investors understandably wish to have focused positions in these return-generating styles. 

Sep 07 2019

Factor Performance: Momentum Saves The Day (Year); Value Is Awful

  • Sep 7, 2019

Momentum has made a furious comeback after a rough start to the year, posting an +11% spread in both May and August. Value continues to get crushed and there has been nowhere to hide: The pain is equally distributed between cheap and expensive, and it’s happening in every sector.

Aug 06 2018

Value Turns Positive

  • Aug 6, 2018

Value finally performed well during July, turning in its best month of 2018 on a spread basis. While the factor category is still deep in negative territory for the year, almost 85% of its underperformance is coming from the worst quintile outperforming the universe; meaning Value has mostly struggled because of expensive stocks outperforming, not cheap stocks lagging.

May 23 2018

Value Style’s 100-Year Flood

  • May 23, 2018

Value is the philosophical cornerstone of many legendary portfolio managers and is widely recognized as one of the most robust quantitative investment factors. Yet, despite its compelling conceptual merits and long-term record of superior returns, recent years’ underperformance of Value has lasted long enough to weigh on even 10-year performance records. 

Jan 18 2018

Muster Drill: To The Value Lifeboats

  • Jan 18, 2018

While we’re not calling for an imminent market top, we are keeping a diligent watch from the crow’s nest for signs of a coming market correction.

Jan 06 2018

Bridesmaid Strategy: Low P/E Sector: Annual Results

  • Jan 6, 2018

Table 5 shows annual performance results for the Cheapest Sector strategy under all four rebalancing frequencies, along with the lowest P/E sector for the annual version of the strategy.

Jan 06 2018

Bridesmaid Strategy: A Value Alternative

  • Jan 6, 2018

For those not psychologically suited to a momentum approach, we’ve developed a contrarian sector allocation strategy that’s delivered even better long-term performance than the Bridesmaid approach.

Jan 06 2018

Coming Attractions

  • Jan 6, 2018

With an abundance of year-end updates in this edition of Perception for the Professional, we plan to release the content for this “Of Special Interest” section separately in mid-January.

Nov 07 2017

The Case Of The Disappearing Value Premium

  • Nov 7, 2017

Market history teaches us that investors behave differently in groups than they do as individuals.

Sep 08 2017

Value Continues To Underperform

  • Sep 8, 2017

August factor performance was more of the same: Value underperforming everything else and extending its losing streak relative to Growth.

Jun 07 2017

Dynamic Factor Investing: A Study In Value

  • Jun 7, 2017

Investment factors experience performance cycles just like every other asset and index. The Value factor is robust across definitions, as all eight versions produced positive excess returns under long/short and long-only methodologies.

Jan 07 2017

Hate Momentum? Try This...

  • Jan 7, 2017

Not wanting to be seen as shameless shills for momentum investing, we’ve developed a contrarian alternative to the Bridesmaid sector approach that’s delivered even better long-term outperformance. It’s based on the holy grail of value investing: Low P/E.

Mar 07 2016

Growth vs Value vs Cyclicals

  • Mar 7, 2016

Small Cap Growth stocks have gotten off to a rotten start in 2016—down almost 12%. On a relative basis, the segment has also been lagging Small Cap Value—underperforming by 9% since last July.

Jan 08 2016

Foreign Stocks: The Value Trap Persists

  • Jan 8, 2016

Foreign stocks’ perpetual underperformance has opened up a valuation gap that should look extremely appealing to anyone with a horizon of more than two years. But proceed with caution.

Dec 08 2015

Stick With What’s Working (Until It’s Not)

  • Dec 8, 2015

The year has been especially tough on managers who might have shared our cyclical worries over the stock market, but who’ve elected to stay fully invested via seemingly lower risk value approaches.

Dec 08 2015

Quantitative Factor Performance: What Is Working?

  • Dec 8, 2015

For the third consecutive year (thus far), quantitative factors worked best within the Materials sector. Energy also saw success as the decline in oil hurt the same stocks as in 2014. Factors were least effective in Health Care and Telecom.

Nov 06 2015

Growth vs Value vs Cyclicals

  • Nov 6, 2015

Growth Edges Out Value As Stocks Rebound

Sep 09 2015

Growth / Value / Cyclicals

  • Sep 9, 2015

Despite the down market, Large Cap Growth expanded its YTD outperformance over Value—now almost 11%. 

Aug 07 2015

Value, Momentum, And The Stock Market Cycle

  • Aug 7, 2015

Conventional measures of market action, like breadth and industry leadership, point to the formation of a bull market top. Divergences abound.

Aug 06 2015


  • Aug 6, 2015

Growth Showing No Mercy To Value

Jul 08 2015

Growth vs Value vs Cyclicals

  • Jul 8, 2015

First Half Of 2015 All About Growth

Jun 04 2015

Growth, Value, Cyclicals

  • Jun 4, 2015

Small Cap Growth stocks were the clear outperformers in May, up almost 4%. Growth stocks are still in favor when comparing YTD figures, with the performance gap especially prevalent in the Small and Large Cap spaces.

May 08 2015

Paying Up For Stock Market “Leftovers”

  • May 8, 2015

It’s well known among market professionals that value investors are congenitally grumpy (for example, the retired keeper of our Undervalued & Unloved stock screen went by the internal nickname of  “Eeyore.”) Worse yet, bad market conditions have lately combined with value managers’ bad genetics to make them an especially unhappy lot, even by their own dour standards.

May 07 2015

Growth, Value, Cyclicals

  • May 7, 2015

Value stocks, recent underachievers, regained some lost ground in April. Large Cap Value was the month’s big winner—helped in large part by rallying energy firms. Large Cap Growth still leads YTD by more than 5%.

Apr 07 2015

Growth, Value, Cyclicals

  • Apr 7, 2015

Growth Continues Run In Q1

Mar 06 2015

Growth, Value, Cyclicals

  • Mar 6, 2015

Growth Stocks Dominating Value

Feb 05 2015


  • Feb 5, 2015

Momentum Continues For Growth Stocks

Jan 08 2015

Growth, Value, Cyclicals

  • Jan 8, 2015

Growth Strong In Second Half Of 2014

Dec 04 2014


  • Dec 4, 2014

Growth Stocks Better In November

Nov 06 2014

Growth vs Value vs Cyclicals

  • Nov 6, 2014

Large Cap Value Left Out Of October Surge

Oct 06 2014


  • Oct 6, 2014

Growth Stocks Better In Rough September

Sep 09 2014

Choppy Factor Performance Is Cousin To Volatility And Suggests Caution.

  • Sep 9, 2014

 We additionally compare factor results YTD to that of 2013 YTD; shift to Large Caps should have staying power.

Sep 08 2014


  • Sep 8, 2014

Large Cap Growth has had an impressive advantage over Large Cap Value in six of the past seven years but that trend is reversing in 2014.

Aug 06 2014


  • Aug 6, 2014

Growth And Value Go Down Together

Jul 07 2014


  • Jul 7, 2014

Value strong again in Q2.