Peter Hargreaves: Coronavirus crisis has been 'salutary' lesson for traditional fund managers

Value investing is 'outdated'

The coronavirus crisis has shown that traditional value investing is now an "outdated" strategy, according to Peter Hargreaves.

Stocks with low ratings, which are generally prized by value-oriented investors, have previously outperformed companies on expensive valuations during times of market stress. However, in the market sell-off experienced in March 2020, so-called value stocks continued to underperform more growth-oriented companies, with chairman of Blue Whale Capital Hargreaves noting the example of Facebook, Amazon, Apple, Microsoft and Google owner Alphabet as having "delivered a general surprise". PGIM Jennison Global Equity Opps adds to 'on sale' US giants "These companies, clumsily labelled 'tec...