In a low growth world, the value anomaly is dead

Mark Arnold | Hyperion Asset Management | 22 August 2019 | 0.25 CE

For six decades following the end of WW2, buying stocks on short-term value heuristics such as low P/E or P/B ratios resulted in high alpha generation that could not be explained by the efficient market hypothesis. But looking back 60 years only provides partial vision – looking back further gives better context and clarity, and shows that this “value anomaly” was driven...