As the long-running Value vs. Growth debate continues, we’d like to add our thoughts with a few points for investors to consider.
On the Great Lakes Fundamental Equity Team we’re bottom-up investors –we don’t try to time factors such as Value, but valuation is key to how we invest. That said, we agree with the consensus that Value as a style is extremely cheap, undervalued, and out of favor, and our own research supports that view (see below). We see these extremes play out every day when we analyze and evaluate companies, and understand their implied growth rates and profitability. As such, we feel Value is poised to outperform –the only question is when.
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Manager commentary represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. To determine if this strategy is appropriate for you, carefully consider the investment objectives, risk factors, and expenses before investing. The holdings, industry sectors, and asset allocation are presented to illustrate examples of the securities bought and the diversity of areas in which we may invest, and may not be representative of current or future investments. Portfolio holdings subject to change and should not be considered investment advice. The specific securities identified and described do not represent all of the securities purchased, sold or recommended for advisory clients and it should not be assumed that investments in the securities identified and discussed were or will be profitable. To obtain a list of all securities recommended during the past year, contact Great Lakes Advisors (GLA) at 312.553.3700. Actual clients’ portfolios may or may not hold the same securities depending on the guidelines, restrictions and other factors of the specific portfolios.
The Russell 1000 Growth Index measures large mid-sized capitalization companies in the United States equities market that also exhibit a growth probability. The index is a composite of roughly 1,000 securities issued by the largest companies in the U.S. in terms of market capitalization. The Russell 1000 Growth Index is a subset of the securities found in the Russell 1000 Index. The Russell 1000 Growth is published and maintained by FTSE Russell.
The Russell 1000 Value Index is the large-cap value segment of the Russell 1000, consisting of the 1,000 largest companies within the Russell 3000 index. Frank Russell Company reports its indices as one-month total returns.
The index performance figures are calculated in U.S. dollars and reported on a gross basis. The index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income. Fees, including but not limited to the advisory fee, transaction and custody charges, would reduce the return. Investors cannot invest directly in an index. These indexes are not managed or sold by Great Lakes Advisors. Past performance is not indicative of future results. 20-6-0096.