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Seth Klarman Calls for a Comeback From Value Stocks

MarkMark
edited January 2020 in Fund Discussions
"Value investing is undoubtedly one of the most famous strategies, and many legendary investors, including Warren Buffett (Trades, Portfolio), have continued to highlight the importance of adopting this strategy for many decades.

However, the performance of value stocks trailed behind that of growth stocks for the best part of the last decade and especially the last year, raising questions regarding the success of this technique.

Billionaire hedge fund manager Seth Klarman (Trades, Portfolio), who runs Baupost Group, does not agree with the critics. In a letter to investors dated Jan. 23, 2020, he defended sticking by value investing even though the performance of the fund lagged behind that of the S&P 500 Index in 2019:"

From Gurufocus.com

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Comments

  • Sven
    I do hope value stocks will make a turn around since they lag the growth stocks badly for over a decade. Same goes for oversea stocks.
  • Simon
    It's an interesting situation. Just my personal opinion, but I equate value stocks with the old economy (20th Century) and growth stocks with the new economy (21st Century). And from my point of view I don't see value making a comeback and achieving parity with growth anytime soon - if at all. That's why I don't own any value funds, apart from one dividend growth fund (which is a core fund in reality).
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