Stock Screens 

Deep value hunting

Deep value hunting

Having devoted much of last week’s column to the subject of how unpredictable the returns from good investment strategies can be and pondering the recent decade of against-trend, underperformance by 'value', it is perhaps fitting that this week I’m reviewing a value screen and it has underperformed by some margin over the past 12 months. The screen in question is based on the approach of famed American contrarian investor David Dreman. Ironically, when I ran the screen last year, it had also underperformed despite a generic value style (as represented by the MSCI World Value Index) having had a decent year. The prevailing trend of underperformance by value has since re-established itself.

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