Can Value Investing Make a Comeback?

Value is out of favour so far this year, the Morningstar Style Box reveals, but fund managers are confident the tide will turn

Annalisa Esposito 16 September, 2020 | 10:23AM

Value Investing

There has only been one story for investors so far in 2020: growth. As tech companies have led the charge in the stock market's recovery from the Covid-19 sell-off, the difference in performance between growth and value funds has been stark to say the least.

This is all too clear when we look at the Morningstar Style Box - a simple chart which indicates a fund's investment biases. Year to date, the performance gap between the average large-cap growth fund and its large-cap value counterpart is a staggering 25 percentage points. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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