Value vs. Growth: A Value Manager’s Perspective

Paul Heathwood, CFA, Director of Investor Relations, provides insights on the topic of value versus growth.
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Access a copy of the presentation here: Value vs. Growth: A Value Manager’s Perspective

Tune in for a discussion with Boston Partners’ Director of Investor Relations Paul Heathwood about a value manager’s perspective on growth versus value.

Topics include:

  • How extended the growth value differential has become;
  • What is driving this change, and how moments like this have played out in the past;
  • As well as the importance of maintaining and rebalancing genuine value exposure in portfolios.
Important Disclosure Information:

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. Some of the specific securities listed represent some but not all of the securities purchased, sold, or recommended for advisory clients. You should not assume that investments in the securities identified and discussed were or will be profitable. The views expressed in this commentary reflect those of Boston Partners as of Oct. 30, 2020. Any such views are subject to change at any time based on market and other conditions and Boston Partners disclaims any responsibility to update such views. Discussions of market returns and trends are not intended to be a forecast of future events or returns and past performance is not a guarantee of future results. Value stocks can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time.

Investment Terms

Earnings per Share (“EPS”): Calculated as a company’s profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company’s profitability. The higher a company’s EPS, the more profitable it is considered to be.

Interest Rates: The amount a lender charges for the use of assets expressed as a percentage of the principal.

Nifty Fifty: A group of 50 large-cap stocks on the New York Stock Exchange that were most favored by institutional investors in the 1960s and 1970s. Companies in this group were usually characterized by consistent earnings growth and high P/E ratios.

Price-to-earnings (“P/E”) Ratio: The ratio for valuing a company that measures its current share price relative to its per-share earnings.

Russell 1000 ® Growth Index: measures the performance of the largecap growth segment of the US equity universe. It includes those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000 ® Value Index: measures the performance of the largecap value segment of the US equity universe. It includes those Russell 1000® companies with lower price-to-book ratios and lower expected growth values.

S&P 500 ® Index: Gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.

Yield Curve: A line that plots yields (interest rates) of bonds having equal credit quality but differing maturity dates. The slope of the yield curve gives an idea of future interest rate changes and economic activity.

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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 nine 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 twelve 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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