Is (systematic) value investing dead?

Israel, R, Laursen, K and Richardson, S A (2020) Is (systematic) value investing dead? Journal of Portfolio Management, 47 (2). pp. 38-62. ISSN 0095-4918

Abstract

Value investing involves buying securities that appear cheap relative to some fundamental anchor. For equity investors, that anchor is typically a measure of intrinsic value linked to financial statements. Recently, much has been written about the death of value investing. Although undoubtedly many approaches to value investing have suffered recently, the authors find the suggestion that value investing is dead to be premature. Both from a theoretical and empirical perspective, expectations of fundamental information have been and continue to be an important driver of security returns. The authors also address critiques leveled at value investing and find them generally lacking in substance.