Cliff Asness and Rob Arnott say value stocks finally have room to run after years of lagging behind.
Although few corners of the stock market have emerged unscathed in 2022’s dizzying selloff, value shares—traditionally considered those that trade at a low multiple of their book value, or net worth—have held up better than most. By one measure, they are on track to beat shares of fast-growing companies by the widest margin since 2001.
