Despite the setbacks US cyclicals have felt early this year, Hepworth thinks the conditions are still right for such a meaningful recovery.
“Looking ahead, investors will be asking whether the return of value investing last year marks a reversion to mean or a false dawn.
“We favour the former thesis on the grounds that monetary policy and inflation will have the strongest impact on value stocks.
“We believe that investors need patience and a long-term investment horizon in order to achieve long-term investment success in any market.
“The current market environment is a challenging one, but we feel confident in staying the course with our focus on searching for value investments, more so when the relationship is poised to begin shifting in favour of value after a tough decade.”
