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Value investing is 'outdated'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The coronavirus crisis has shown that traditional value investing is now an "outdated" strategy, according to Peter Hargreaves.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

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Mabel Insights adds DFM partner

Mabel Insights adds DFM partner

Additional Waverton data to be available on comparison site

Jen Frost
clock 12 November 2024 • 2 min read
Partner Insight: Navigating the great wealth transfer

Partner Insight: Navigating the great wealth transfer

The great wealth transfer represents opportunity and risk in equal measure for financial advisers.

Warwick Bloore Senior Specialist, Adviser Research Centre, Vanguard, Europe
clock 12 November 2024 • 6 min read
Neil Woodford makes YouTube and Instagram appearance with investment channel

Neil Woodford makes YouTube and Instagram appearance with investment channel

Woodford Views is being pushed out across social media

Eve Maddock-Jones
clock 11 November 2024 • 2 min read