Tyndall's Murphy: Two years on from value predictions

Significant style rotation

The significant style rotation from growth to value over the opening months of this year has attracted widespread attention, as for the first time for a decade, market leadership has switched from growth to value stocks.

This makes our progress report on our suggestion that value, represented by our proxy Imperial Brands, might outperform growth, represented by Rentokil Initial, over a five-year period from May 2020 particularly timely.    Looking back one year to the first-year update in May 2021, Imperial had, despite a poor start, modestly outperformed Rentokil, delivering a total return of 4.6% compared to 2.3% over the period 6 May 2020 to 5 May 2021. This was despite the fact that Rentokil, with particular help from their Hygiene division, delivered stronger financial metrics through the pandemi...