value investing – Benefits Canada.com

Expert panel: The concept of risk and risk management in value investing and modern portfolio theory

Gideon Scanlon — Thu, 14 Oct 2021 17:15:20 +0000

Between mixed signals about inflation, signs of structural weakness in China’s over-leveraged real estate sector and September’s low returns on global equities, institutional investors have just been through a volatile quarter. And the fourth quarter is likely to be filled with hidden hazards, both known unknowns and unknown unknowns. Most portfolio managers will try to […]

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Vaccine news a shot in the arm for value investing

mschmit — Wed, 18 Nov 2020 05:00:58 +0000

Now is the time for institutional investors to buy value, small cap and cyclical stocks and hold steady while the economy builds back, says Bill Callahan, an investment strategist at Schroders. Indeed, energy and financial sector stocks saw gains Monday as investors are rotating from growth and large cap stocks after Moderna Inc. released data […]

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Is value investing still relevant in a volatile market?

mschmit — Tue, 06 Oct 2020 04:45:35 +0000

Back in December 2018, I wrote an article asking whether it was a good time for pension plan sponsors to revisit value investing. At that time, public equity markets were having a difficult quarter and traditional value strategies didn’t perform as well as expected, failing to provide the much-touted protection in down equity markets. Flash forward to […]

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Is value investing still relevant?

mschmit — Thu, 23 Jul 2020 04:08:42 +0000

With a rough 2020 year-to-date, value investing’s recent poor performance follows over a decade of underperformance, leaving many to ask if it’s still relevant, according to a new white paper by Mercer. Between 1927 and 2008, the average annual value premium was 5.5 per cent, but since then results have been lacklustre. In the 2010s, […]

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Value investing’s crisis of confidence

mschmit — Mon, 11 May 2020 04:25:02 +0000

A value approach to investing has yielded great benefits in the past. Though there are often semantics around what constitutes value investing, it can be described as buying securities that are cheap using some metric in hope of outperformance. Beyond value, investment managers may also choose to work in the small-cap space, buying companies below […]

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Moving beyond a naive definition of value investing

mschmit — Wed, 25 Mar 2020 04:38:20 +0000

Stock picking with the right process and the right temperament works. And, contrary to popular claims, value investing is not dead. Those who claim it is dead, substantiate this by providing evidence that picking cheap stocks, meaning stocks with low price-to-earnings or price-to-book ratios, has been ineffective since the onset of the great recession. What […]

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Emerging markets value investing not about catching falling knives: expert

mschmit — Tue, 17 Mar 2020 03:47:08 +0000

When it comes to emerging markets equities, it’s important to look for compounders that will create value over time, says Andrew Miller, chief investment officer for emerging markets equities at Mondrian Investment Partners Ltd. “Obviously, all of us that operate in the stock market and invest in the stock market, whether you’re a fund manager […]

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Is value investing dead? And what does this have to do with low or negative interest rates?

mschmit — Fri, 13 Dec 2019 03:26:34 +0000

Two questions seem to occupy pundits and popular media these days. One is why interest rates are negative and what this means. The other is whether value investing is dead. Answering the first question provides useful insights in dealing with the second question. Negative interest rates on government bonds are observed in Europe and Japan, […]

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Schwartz talks value investing, current market challenges for private equity

mschmit — Mon, 11 Nov 2019 05:25:17 +0000

Since Gerald Schwartz founded Onex Corp. in 1984, both his firm and the private equity industry have come a long way, with the size of the asset class skyrocketing. “In a way, success is just standing there and having the wind at your back for 40 years,” said Schwartz at the CFA Society Toronto’s annual […]

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Is it a good time for plan sponsors to revisit value investing?

mschmit — Tue, 18 Dec 2018 04:00:08 +0000

Many institutional investors include value-oriented equity strategies in their portfolio to provide protection during declining equity markets. But not all value strategies are created equal, as many found out during the global financial crisis 10 years ago. As well, many investors expected their portfolios to perform better than the broader market, to preserve cash, but this […]

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