Goldman Sachs: Value Investing Is Dead

Value investing is dead according to a new report from Goldman Sachs’ Portfolio Strategy Research Team headed by Ben Snider.

In a research report issued earlier this week, Snider and team claim that over the past decade the value factor has suffered a cumulative 15% loss, declining in six of the last ten years. This dire performance has certainly proved to be a large black mark on the factor’s long term performance. From 1940 to 2007 the value factor pioneered by Eugene Fama and Kenneth French posted an average annual long/short return of 5%, making it the best performing investment strategy in history.

[klarman]

However, as noted above over the past decade...