Imagine a boxing match between a growth investor and a value investor. Who do you think will deliver the knockout punch?
The answer: it depends on how many rounds the fight is going to be. There will be periods when growth investing gets all the points although based on historic data and research, value investing is the winner in the long term.
In this edition of the Publisher's Forum, we highlight the key takeaways from a white paper co-authored by Nikko Asset Management's portfolio managers Tim Johnston and Jason Kim. Their research discussed the equity market anomalies that supported the virtues of value investing.
In the video interview, Johnston reviews the historical excess returns available from these market anomalies.
In many ways, according to Johnston, a 'best ideas' portfolio might just be the portfolio of champions in the long term.
Nikko Asset Management Australia Limited ABN 34 002 542 038, AFSL 229664 (Nikko AM Australia) is the responsible entity and issuer of units in the Nikko AM-Tyndall Australian Share Concentrated Fund ARSN 143 598 556 (Fund). Nikko AM Australia is part of the Nikko AM Group. The information contained in this material is of a general nature only and is not personal advice. It is for the use of researchers, licensed financial advisers and their authorised representatives. It does not take into account the objectives, financial situation or needs of any individual. Investors should consult a financial adviser as well as the information contained in the current Fund's Product Disclosure Statement (PDS) which is available at www.nikkoam.com.au/pds before deciding to invest in the Fund. Applications will only be accepted if made on a current application form. An investment in the Fund is not a bank deposit and distributions and the return of capital are not guaranteed. Past performance is not an indicator of future performance. Any references to particular securities or sectors are for illustrative purposes only and are as at the date of publication of this material. This is not a recommendation in relation to any named securities or sectors and no warranty or guarantee is provided that the positions will remain within the portfolio of the Fund. Fund net returns are post fees, pre tax using redemption prices and assume reinvestment of distributions.
