Research Affiliates expects 16% return from value repricing
New study shows “the engine for value performance is not broken”
A 12-year losing streak has tested investors’ faith in systematic value investing, but giving up on the strategy now would be a huge error, according to Rob Arnott, founder and chairman of Research Affiliates.
Arnott dismissed claims that value investing is broken. Research Affiliates, which specialises in factor investing, has analysed those arguments and found them wanting, he said. The firm believes value stocks in the US are now so cheap that investors should expect a return of at least 16%
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