Value Stocks Misfire as JPMorgan’s Hedge-Fund Clients Trim Bets
- Systematic style down this month even after bond yields rose
- JPMorgan data shows funds have recently pared back value bets
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Value investing is losing again -- and hedge funds have less ammo to save it this time round.
Over the past year, the supposedly slam-dunk trade in the economic reopening has followed a simple rule: When yields rise, value wins. That hasn’t worked out this month even as benchmark 10-year Treasury yields rose near their peak levels of 2021. The systematic strategy of buying companies that look cheap while selling their expensive peers has lost 2% in a Dow Jones market-neutral index.