“People claimed the death of value investing in the early 1970s, the late 1980s, the late 1990s and most years since the financial crisis.” That was one of the points made by Jens Moestrup Rasmussen, chief portfolio manager at Sparinvest, when he spoke at the Nordic Investment Managers Forum.
Throughout the years there has been a perceived underperformance of value investing, Jens Moestrup Rassmussen argues. “But people tend to overlook the fact, that research shows, that value investing is an efficient way to outperform the market over longer time horizons.”
The performance of value strategies is often tied to market cycles, economic cycles and interest rates. “Buying cheap assets remains a solid long term investment strategy. Rising interest rates could be a catalyst for a value rebound”, Jens Moestrup Rasmussen concludes.
The Nordic Investment Managers Forum took place in Luxembourg on 6 October 2016. The event has been growing every year since its launch in 2014. Read more about the event in the Investment Europe magazine.