HFA Icon

Why Do Value Fund Investors Consistently Underperform?

HFA Padded
Rupert Hargreaves
Published on
Updated on
Sign up for our E-mail List and Get FREE Access to Exclusive Investment E-books and More!

Value investing can be a tough discipline to follow for the average individual investor. Research can take hours to put together, and it can take years for an investment thesis to play out. What's more, trying to be "greedy when others are fearful" goes against our social nature as human beings (if you're interested in why this is the case, I've covered the topic before, here).

[timeless]

As a result, many private investors turn to value-orientated mutual funds instead of specific stocks, the rationale being that more experienced mutual fund managers won't make silly mistakes and have the stomach to ride out short-term market volatility.

Value fund investing: A sensible choice

On paper, investing in a value-orientated mutual fund should be a solid...

Login required to continue reading.

Setup a free account to get access to this article (no credit card required).

View Full Article
Already a member? Log in here
HFA Padded

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha