Growth vs Value Update: Value Dramatically Outperforms in ’16

Here is our update from this time last year:

Growth was clearly winning the “style’ game, with a very slight edge to small-cap growth in 2015.

This year, it has been all about Value investing, in terms of style returns.


Bespoke added a metric on one of their tables showing the style returns, post-election and YTD. About half the annual returns for the styles, came post-November 8th, 2016.

The point is readers and investors have seen a complete reversal of the Growth and FANG out-performance this year. It makes sense too given that Energy bottomed in January ’16, commodities also started improving after Q1 ’16, which means Basic Materials had a better 2nd half of ’16.

What’s the call for ’17 ?

Personally id rather not make a forecast. As a “blend” investor for clients, (both value and growth) clients growth names performed pretty well, like Microsoft and Schwab, while client “value” names like GM and Ford, had tougher years. Here is what Jeff Miller said about forecasting ( and if I don’t have a strong forecast based on data or research, I’d rather not venture out with an opinion.

For clients, both styles will be employed.

Thanks for reading.


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