Value investing is back but not where you think

In a market still dominated by AI narratives and growth momentum, value investing is quietly
making a comeback. But the real story isn’t just about style rotation, it’s about geography. In recent quarters, many value stock investors have outperformed their benchmarks. This indicates a shift in global market dynamics and could signal a change in market leadership.

For years, global value strategies lagged the broader global equity market. While absolute performance was solid, value stocks did not keep up with the dominance of large US technology stocks in the MSCI World Index. That picture is beginning to change. In the past six months, value-oriented funds have outperformed their value benchmarks, underlining the importance of active stock selection and regional diversification.