An article in CFA Institute discusses the methodology and performance of growth-at-a-reasonable-price (GARP) investing, a style popularized by Fidelity manager Peter Lynch.

“Most investors,” the article says, “are inclined toward value, a preference backed by ample academic research.” But some try to bridge the value/growth gap through a hybrid, GARP strategy. It describes the methodology and an analysis of GARP stocks with respect to earnings growth and valuation:

The article also offers a breakdown of GARP stocks by sector:

It concludes that “a GARP approach seems to extract the best of both investment styles,” adding that while it was an effective strategy since 1989, “how effective depends on the time frame.” For example, data shows that between 1989 and 2001, GARP and growth stocks outperformed value, but when the tech bubble “imploded” and growth lagged value, GARP stocks “behaved more like value stocks.”