James Anderson: Value sectors likely to be 'physically destroyed'

Frustration over lack of opportunities

The stocks investors are betting on to give value investing its long-awaited turnaround in fortunes could be "physically destroyed" over the next decade, according to Baillie Gifford's James Anderson.

Anderson warned value investors "haven't seen anything yet", with the relative underperformance of the investment style over the ten years set to turn into absolute losses in the years ahead. Value investing has been under pressure for a long time, as high-growth companies have powered ahead amid low interest rates and low growth across both the developed and emerging world. The differential between value and growth has been greatest in the US, where the MSCI USA IMI Value index has returned 232%, compared to its Growth counterpart's 380% in the ten years to 10 January 2019, FE fundin...