Investment philosophies part 2

Almost every month the financial press will publish an article lauding the top performing fund manager over the previous 12 month period. Generally, this is accompanied by a picture of the manager looking quite pleased with themselves in an expensive suit, together with an after match report detailing which stocks they had in their portfolio that allowed them to outperform their peers. The assumption underlying these articles is that all equity funds are managed using the same investment philosophy and that a manager’s outperformance is solely due to their skill. No investment style outperforms in all markets, but most fund managers will argue that their style is superior. In the piece Investing Styles Part 1 we looked at the four basic investment styles (index, growth, value and quality). This week we are going to look at the market conditions under which each style tends to outperform. Full story in the attached document. If you missed part one you can find it here: (VIEW LINK)