WHITEPAPERS
Finding Value in the "Unyielding" New Era of Fed Policy
Traditional value investing has been upended over the past decade. In this follow-on paper to our 2015 paper titled, "The Fed Is the New Value Investor", we revisit our expectations for the performance of value as an investment style in light of Fed policy. We also analyze some of the largest over/underweight positions in institutional portfolios and their unintended consequences. Finally, we suggest that investors utilizing a traditional mean reversion framework begin to view asset class opportunities through a different lens. We believe this requires a wholesale review of long-term assumptions in order to successfully implement a modern asset allocation approach.
Q1 2020
The Fed Is the New Value Investor
Over the past five years, hedge funds and value investors have struggled. We explain that value investing is a form of insurance underwriting. We argue that the Fed's market interventions have been disrupting this activity, contributing to its lackluster performance.
Finally, we suggest ways for value investors to avoid Fed manipulation. Q1 2015
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