Your FP/CM Newsletter – July 2019
A DISCUSSION ABOUT “INVESTMENT STYLES”
CRAIG GIVENTER, CFA, Partner, Managing Director, Portfolio Manager
“Investment Styles” are a way of categorizing securities and/or asset classes into groups that make it easier to understand and analyze what a given portfolio or index contains. A few of the classic, contrasting investment styles are: “Large-cap” versus “Mid-cap” and “Small-cap”; “Conservative”versus “Aggressive”; and “Growth” versus “Value”.
The Growth vs. Value Debate
Currently one of the more interesting debates about “style investing” revolves around “Growth” versus “Value”. As the name denotes, “Growth” primarily refers to companies that grow revenues and/or earnings at rates faster than the overall market, and whose securities tend to be more expensive than the average company’s equity valuation. “Value”, on the other hand, describes companies that tend to be slower growth, and whose securities are less-expensive than the overall market.