10 June 2021 - 2021 Value of an Advisor Study

2 April 2020 - Memo to the Investment Committee: Dare to be Different

10 March 2020 - Are stocks heading for a bear market?

12 November 2019 - Style Council – revisited

11 November 2019 - Five trusts for investors who believe a value revival is on the way

12 September 2019 - Deciphering the dividend gap and our 2020 dividend vision – JOHCM UK Equity Income Fund

Deciphering the dividend gap and our 2020 dividend vision - JOHCM UK Equity Income Fund

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18 June 2019 - Active managers return to outperforming passive in 2019

FE Trustnet finds that there has been a fall in the proportion of index-tracking funds making top-quartile returns this year.

The number of passive funds outperforming their active rivals has dropped in 2019, following the tough conditions of last year that helped them to outpace stock pickers, research by FE Trustnet suggests.

Last year was a difficult one for market as issues such as the Federal Reserve’s tightening programme, the US-China trade war, Brexit and spluttering economic growth prompted market sell-offs.

As such, many active managers were wrong-footed and failed to beat the market. This means that index trackers rose up the sector rankings and beat many of their active peers.

Performance of UK sector vs index in 2018

Performance of UK sector vs index in 2018

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28 May 2019 - Is it time to switch from growth- to value-based strategies?

Yellow Capital

Growth and momentum strategies have, by and large, been the only game in town for the last five years, as evidenced by the meteoric rise of the NYSE Fang+ Index. Established in 2014, this benchmark contains ten high-octane growth stocks – America’s Facebook, Amazon, Apple, Netflix, Alphabet (the parent of Google), NVIDIA, Tesla and Twitter and China’s Baidu, Tencent and Alibaba. They are in various stages of their development, from relatively mature cash generator (Apple) to wildly profitable (Alphabet, Alibaba) to deeply cyclical (NVIDIA) to just breaking into profit (Netflix) to apparent cash-sink (Tesla).

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2 April 2019 - Best global equity funds of 2019 revealed

Article taken from Financial Adviser.

The best performing global equity funds of the first quarter of 2019 have been revealed.

Data from FE Analytics shows the best performing fund in the IA Global sector since the start of 2019 was the £795m Baillie Gifford Global Discovery fund, which has returned 17 per cent in three months.

That performance was enough for the fund to beat the other 273 funds in the sector, the average of which has returned 8 per cent.

The largest sector exposures in the fund, which has been managed by Doug Brodie since 2011, are to healthcare and telecoms, themes which are prevalent in many Baillie Gifford funds.

A significant driver of performance in the first quarter of the year has been Ocado. The UK technology company and grocer’s shares have risen from £8.10 to more than £13 this year to date.

Meanwhile, the best performing global equity investment trust this year to date is Lindsell Train.

This is a £178m investment trust that trades at a 25 per cent premium to its net assets, but rarely issues new shares.

The largest investment in the trust is a stake in Lindsell Train Limited, a privately held asset management company that employs the fund managers of this trust.

Click here to continue reading the article on Financial Adviser.

30 March 2019 - The chart that tells the story of value investing’s potential

Value stocks are currently the most out of favour in the history of financial records. Is now the time for value to make its comeback? – Article taken from Schroders

Value stocks are on their longest losing streak versus growth stocks since records began, according to data stretching back to 1936.

Value investing is the art of buying stocks which trade at a significant discount to their intrinsic value. Basically, buying companies which appear undervalued by investors for no justifiable reason.

Growth investors pay less attention to a stock’s price. Even if a company looks expensive they may believe its above average future growth justifies the expensive price tag.

Value’s longest losing streak in history

There have been three periods of dramatic underperformance by value relative to growth since records began: the tail-end of the Great Depression in the late 1930s, the build up to the bursting of the dotcom bubble in the late 1990s and now.

As the chart below shows, value’s underperformance during the late 1930s and 1990s was sharp but also short, lasting around four years and two years respectively. In comparison the current underperformance which began in 2009 is now nearly a decade old.

The good news for value investors is that in the past, value’s bouncebacks were even more dramatic than the underperformance.

Click here to continue reading the article at Schroders.