Peter Hardy, CFA, Vice President, Senior Client Portfolio Manager, American Century Investments joined Keith Black, Managing Director of RIA Channel to discuss value vs growth trends.
While the performance of growth stocks handily beat value stocks in 2020 and 2021, that outperformance abruptly reversed in 2022 with growth stocks giving back nearly all of their relative performance from the prior two years. When value was out of favor in 2020 and 2021, small and midcap value funds such as American Century’s were able to buy high quality, low volatility stocks with sustainable franchises at a discount to their perceived long-term price. As a risk-aware value manager, American Century seeks to buy undervalued stocks that can outperform over time. Looking ahead, economic uncertainty coupled with the the Fed’s strong position on maintaining interest rates may lead to continued favorable conditions for value investing, says Hardy.
In 2023, American Century’s Mid Cap Value Fund was recognized as Asset Manager of the Year in the Small, SMID, Mid Cap Equity category.
Resources:
American Century Investments – Home
American Century Investments – Insights
American Century Investments – Q2 2023 Investment Outlook