- Momentum strategies have gained a lot of media attention. They had garnered a reputation for being growth strategies, since growth was working for so long. Recently, value has taken over.
- Another interesting dynamic taking hold is that quality strategies - which select growth and quality companies - are showing valuations that rival traditional value indexes but with a different composition and sector mix.
- While traditional value strategies select companies that earn lower returns on capital, DGRW is showing valuation multiples as compelling as the value benchmarks but with a process that focuses on high return on capital and strong balance sheet stocks.
For further details see:
Why Quality Strategies Are Drifting To Value Valuations