However the outperformance of the S&P 500/Barra Value Index was only a slight one: the S&P 500/Barra Value Index returned -11.71% whereas the S&P 500/Barra Growth Index closed the year down -12.73%.
The interesting part to note is that there were as many 'growth' months as there were 'value' months which supports the results of our study ('Is there a choice between value and growth investment styles', 28.11.01) that investors should stay equally balanced between the two styles at all times. As economic indicators fail to clearly predict a 'value' or 'growth' year and frequent switching between stocks/funds of both styles increase investor's risk to miss out on the performance from both styles, we recommend to equally balance the portfolios also with respect to style.
On a global basis, we recommend investors to consider ACM Global Growth Trends as well as ACM Bernstein Global Value. Both funds outperformed their benchmark in 2001. The ACM Global Growth Trends closed the year down 14.44% whereas the MSCI World Index was down 16.50% and the Russell 1000 Growth Index down 16.23% resulting in an outperformance of 200 bps for the year. The ACM Bernstein Value closed 2001 down 4.8% resulting in an outperformance of 1170bps compared to the MSCI World Index and an outperformance of 281bps compared to the Russell 1000 Value Index.
Both funds have each an exposure of around 40 - 60% to the US; the rest is invested in Europe and Japan. The biggest sector weights of the ACM Global Growth Trends are Healthcare (20%), Finance (19%), Communications & Technology (14%) and Consumer Services (8%) whereas ACM Bernstein Global Value is currently exposed to Banks (17%), Oil & Gas (11%) and Insurance (7%). With a minimal overlap (in average only 6%), a combination of these two styles offers a great way for investors to diversify.
Browse
related articles
Stocks to buy in the US in the anticipated correction (page 4 of 4)
- Tuesday, January 15 - 2002 at 14:50
Related content
Article Options
Credit Suisse, Private BankingTuesday, January 15 - 2002 at 14:50 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / 4C.
Disclaimer »
The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of the AMEinfo.com Web site does not constitute advice or a recommendation by AME Info FZ LLC / 4C and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this AMEinfo.com Web site.
AME Info FZ LLC / 4C can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on the AMEinfo.com Web site nor do opinions of contributors necessarily reflect those of AME Info FZ LLC / 4C.
In no event shall AME Info FZ LLC / 4C be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to the AMEinfo.com Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise.
