Reese: Growth & Value Not an Either/Or

In the latest edition of his Hot List newsletter, Validea CEO John Reese says that investors too often fall prey to the idea that growth and value are opposing concepts. In reality, he says the best stocks include aspects of both value and growth plays. “In the dozen or so years I’ve spent studying history’s most successful investment strategies, I’ve found that paying too much attention to such style-box distinctions can be harmful to your… Read More

The Two-Pronged O’Shaughnessy Attack

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the James O’Shaughnessy-inspired strategy, which has produced annualized returns of more than 6.7% since its inception more than six years ago, a period in which the S&P 500 has gained just 1.3% per year. Below is an excerpt from today’s newsletter along with several top-scoring stock ideas based on the O’Shaughnessy… Read More

Buckingham: Time for Value

Recently, we highlighted a study performed by Russell Investments that found value stocks typically begin to overtake growth stocks “almost immediately” when the economy bottoms. Today, John Buckingham of Al Frank Asset Management provides some additional evidence that good times may be in store for value investors, who were hit particularly hard in the recent downturn. In an interview with InvestmentNews.com, Buckingham says that in the previous five instances (before the current one) in which… Read More

Arnott: Value Stocks Priced at or below Depression Levels

Researcher and money manager Rob Arnott has made a lot of headlines lately with his focus on the bond market, but in yesterday’s Financial Times he keyed in on another asset class — and it’s one that he says is extremely cheap right now: deep value stocks. “Most investors,” writes Arnott, “do not yet realise that today’s spread between growth and value, on most measures, is nearly as wide as it was at the peak… Read More