Peter Hargreaves: Coronavirus crisis has been 'salutary' lesson for traditional fund managers

Value investing is 'outdated'

David Brenchley
clock • 3 min read

The coronavirus crisis has shown that traditional value investing is now an "outdated" strategy, according to Peter Hargreaves.

Stocks with low ratings, which are generally prized by value-oriented investors, have previously outperformed companies on expensive valuations during times of market stress. However, in the market sell-off experienced in March 2020, so-called value stocks continued to underperform more growth-oriented companies, with chairman of Blue Whale Capital Hargreaves noting the example of Facebook, Amazon, Apple, Microsoft and Google owner Alphabet as having "delivered a general surprise". "These companies, clumsily labelled 'tech giants' and therefore considered 'risky', have managed rather ...

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