
Value stocks have historically outperformed their growth peers and the market by a healthy margin – a phenomenon known as the Value premium. This anomaly is observed across markets and regions (such as developed and emerging markets), in recent and older time periods, 1 and even across different asset classes.2 That said, Value investing is not without risks as illustrated by the especially challenging Value winter of 2018-2020.3 Following this period, however, we have again witnessed strong performance from the Value factor, triggering numerous questions from investors.