Entry Points | Whoever Thought That Active Value Was Contrarian?

Paul Heathwood, CFA, Director of Investor Relations, highlights why active value has become a contrarian exposure in this short clip. Read the highlights below.

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Not “Intrinsic” Value, Genuine Value

Catalysts in Play: It’s no secret that fund flows over the past decade have gravitated to passive strategies. According to capital markets and economic research firm Strategas, this shift has been even more pronounced in the value category, where ETFs tied to the factor have registered $163 billion in net inflows since 2008, more than twice as much as growth-oriented ETFs. The same trend can be seen in the Morningstar data, where AUM flows into passive value seem to be coming at the expense of active value exposures.

Entry Points: This imbalance suggests investors are utilizing ETFs to capture value beta. Investors with a contrarian bent, however, may appreciate the alpha opportunity this creates to utilize an active approach for their value allocation.

  • A Turn to Value: Historically, value tends to outperform during the early stages of a recovery as well as during inflationary periods when escalating prices favor companies with real assets. For these reasons, many investors have already been rotating into value strategies aggressively since the summer.
  • A Turn to Active Value: What many may overlook is that genuine value — a term introduced by consultant Mercer to distinguish active- versus passive-value exposures — can maximize total returns as the value cycle takes shape.
  • History as a Guide: Over the past 25 years, genuine value as delivered by Boston Partners has outperformed passive benchmarks to an even greater degree when value outperforms growth. This has been true not only across large-cap portfolios, but is evident in all-cap and small-cap portfolios as well.

Active Strategy: Boston Partners’ strategies offer specialized actively managed value equity investing across a variety of geographies, market capitalizations, and long/short. The construction of our portfolios is guided by a sensible set of fundamental truths that have been tested over time and various market cycles.

For questions or additional information, please contact us.

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Jack Birmingham

Product Specialist

4 Years of Investment Experience

4 Years at Boston Partners

Mr. Birmingham holds a B.A. degree in Political Science from Hobart College.

Mr. Birmingham is a Product Specialist for the Boston Partners Value Equity strategies based in the Boston office, responsible for clients, consultants and prospects outside of North America. Prior to this role, Mr. Birmingham joined the firm as an RFP Writer and Database Coordinator in the Marketing Department, where he supported all of the firm’s equity strategies.

Matthew Donovan

Equity Analyst

Mr. Donovan holds a B.A. in Economics from the University of Pennsylvania.

Mr. Donovan is an equity analyst with Boston Partners. Mr. Donovan is focusing his analytical efforts on Emerging Markets equities. Prior to this, he was a Research Analyst for the Boston Partners Sustainability and Engagement Team. He was responsible for original ESG/Sustainability research on companies held in Boston Partners’ portfolios. Mr. Donovan holds a B.A. in Economics from the University of Pennsylvania. He has one year of experience.

John Zhao

Equity Analyst

Mr. Zhao holds a Bachelor of Arts degree from the Richard Ivey School of Business at Western University and an MBA from Harvard Business School. He has six years of industry experience.

Mr. Zhao is an emerging markets industry analyst with Boston Partners specializing in fundamental research of stocks held in our Emerging Markets Equity products. Prior to his role at Boston Partners, Mr. Zhao worked as a Private Equity Associate in Salt Lake City and an Investment Banking Associate in Hong Kong.

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Jonah Frank

Equity Analyst

Mr. Frank was a student at Boston University where he earned a B.S. degree in business administration with a concentration in finance and management information systems.

Mr. Frank is an equity research analyst with Boston Partners. Mr. Frank is focusing his analytical efforts on equities within a variety of cyclical industries.

Edward Stansky

Equity Analyst

Mr. Stansky holds a B.S. degree in economics from Duke University and a M.B.A. from NYU’s Stern School of Business. He has six years of investment experience.

Mr. Stansky is an equity research analyst with Boston Partners and has generalist coverage responsibilities. Prior to this role, he worked as a high yield and leveraged loan analyst at DDJ Capital and as an investment banking analyst in debt advisory at BofA Merrill Lynch.

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Marlon Thompson

Equity Trading Assistant

Mr. Thompson holds a B.S. degree in finance from Boston College. He has ten years of industry experience.

Mr. Thompson is an equity trading assistant for Boston Partners. Prior to assuming this role, he worked as a portfolio operations analyst. Before joining the firm, Mr. Thompson held several roles including Vice President of Operations at Benefit Street Partners LLC and positions at International Fund Services (IFS) and Pioneer Investments.

Kara Pattipati, CFA

Relationship Manager

Ms. Pattipati holds an M.A. in International Relations from the University of St. Andrews. She holds the Chartered Financial Analyst® designation. Ms. Pattipati has ten years of industry experience.

Ms. Pattipati is a member of the Relationship Management team at Boston Partners. She works with many of our key domestic and international clients in a client service and relationship manager capacity. Prior to joining Boston Partners in 2016, she was a business development associate at Geode Capital Management.

Elizabeth Sheerin

Relationship Manager

Ms. Sheerin holds a B.S. degree in business management from Babson College. Ms. Sheerin has thirteen years of industry experience

Ms. Sheerin is a member of the Relationship Management team at Boston Partners and she joined this team in 2011.  She works with many of our key domestic and international clients in a client service and relationship manager capacity. Prior to joining our firm, she was a Client Service Representative at Putnam Investments. She also held several financial services related internships including working for Merrill Lynch Global Wealth Management and State Street Global Advisors.

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