From a sample of 86 value funds invested in the UK, Lyxor found that the majority still outperformed their benchmark in January, and it was a similar story across Europe.
This is a positive story for those who pride themselves as stockpickers, still the analysts stress the recent success of active investing is too short to draw robust conclusions.
“During recent years, funds with a value or growth bias systematically underperformed their benchmarks, in particular in the US. Such developments also highlight the fact that 2017 will, in our opinion, remain a challenging year for investors.
“Political risks loom large in Europe and policy uncertainty is elevated in the US Although we believe that value investing has the potential to regain strength in the coming months, we also believe that the margin of error is significant and such risks need to be diversified.”
