Lyrical Partners is a traditional value investing firm whose portfolio trades at only 11x forward earnings and their comparative benchmark the MSCI EAFE is trading at 15x. They are focused on the cheapest segment of the market since it has delivered the most enduring alpha of more than 400 bp per year since 1975 when looking at developed markets outside the US.
The most obvious problem with the cheap part of the market is that most of the companies from it are low-valued for a reason. While that segment of the market did outperform despite its fundamentals, its earnings...