Alec Hogg: Einhorn explains why Value is coming back
Hedge fund manager David Einhorn of Greenlight Capital shot to fame in 2008 after profiting from a short position on Lehman Brothers. At a high-profile conference just weeks before the bomb exploded, he had publicly warned about the 158-year-old investment bank's imminent collapse. Einhorn made billions during the chaotic period, now referred to as the Great Financial Crisis.
In recent years, those like Einhorn who follow the common-sense Value Investing approach have been on the wrong side of the US stock market's fashion stakes. Growth stocks have massively outperformed their Value alternative. Each $100 invested into the MSCI World Value index 15 years ago is worth $271 today – less than half the $575 yielded by the Growth index.
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