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A value-investing expert explains why beaten-down stocks are the most appealing since the dot-com bubble a?? and shares 3 stocks he bought as the coronavirus crash created 'rare' opportunities

A value-investing expert explains why beaten-down stocks are the most appealing since the dot-com bubble a?? and shares 3 stocks he bought as the coronavirus crash created 'rare' opportunities
Tobias Carlisle



Tobias Carlisle, the founder and portfolio manager of The Acquirers Fund a long/short deep-value exchange-traded fund leans on historical data to make a compelling case for value-oriented investors going forward.




Historically speaking, Carlisle says that "higher-than-average future returns" for value stocks follow periods of unusual discounts.




Cliff Asness, the billionaire hedge-fund manager and founder of AQR Capital Management, echos Carlisle's view stating: "This is where long-term investors make their bones."




Near the lows of the coronavirus-driven stock rout, Carlisle rebalanced his portfolio and scooped up shares of three companies. He details those trades below.




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There's no denying that value-oriented investment strategies have hit a rough patch.
"However it is measured, value is mired in an extended period of underperformance," said Tobias Carlisle, the founder and portfolio manager of The Acquirers Fund. "Depending on how it is measured, that underperformance begins in 2005 or 2014."
Carlisle notes that value portfolios structured around price-to-earnings ceased to outperform glamour stocks widely held and popularized stocks with perceived strong growth potential in 2005. Then, in 2014, he points out that value portfolios assembled around price-to-cash flow value started to lose their luster against their glamourous counterpart.
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