Letter to shareholders - Value Equities

“There is a discernible relationship between long-term interest rates and style performance over time. The return to a more normal interest rate trend should favour value stocks.”

In his latest Letter to Shareholders, Jens Moestrup Rasmussen, Head of Sparinvest’s Value Equities team considers the investment impacts of economic cyclicality and explores the ‘duration-based explanation’ of the value premium which links interest rate movements to style performance. 

Read the letter here...