The Strengths and Weaknesses of the Major Value Factors (Ep. 81)

The Strengths and Weaknesses of the Major Value Factors (Ep. 81)

Many investors think all value strategies are fairly similar to each other. And as a result they expect the value funds they invest in will all perform similarly over time. But the reality is that the behind the scenes details that go into building a value strategy can play a major role in how it performs and lead to major deviations in performance among value funds.

In this episode, we take a look at:

  • One way that value strategies can differ – the metric they use to define value;
  • The major value metrics and the pros and cons of each of them;
  • The construction of value composites, and;
  • Why their benefit might come from the different source than what you think.

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