Value investing, which was pioneered by Benjamin Graham and Warren Buffett, has struggled since 2015 as so-called growth stocks beat out their inexpensive brethren. Sidman joins a growing list of managers that have given up on the strategy. In the last week alone, Bloomberg has reported plans by both Chieftain Capital Management and SPO Partners & Co. to return client money. John Griffin closed Blue Ridge Capital last year. Another long-time value investor, Eddie Lampert, has been flailing after his bet on Sears Holdings Corp. went awry.
Value strategies work best after a really big decline because they are oriented towards identifying the mispricing of individual stocks relative to their intrinsic value. However, they are prone to selling too early as prices advance for exactly the same reason.Click HERE to subscribe to Fuller Treacy Money Back to top