There have been a lot of talk about value investing and trend following being dead in recent years. I would like to ask the professionals on this forum. What advice would you give to these has-been money managers whose method used to work but no longer work today (at least for the time being and nobody knows when it'll make a comeback)?
This question is even more relevant for those who manage their own money. Professional money managers earn a fee despite negative performance. The rest do not have this luxury when their method stops working.
https://www.barrons.com/articles/david-winters-shuts-down-wintergreen-fund-51556053428
The once-lauded value investor David J. Winters is shutting down his fund.
It’s no doubt a difficult result for a fund manager whose star shone brightly early in the new century.
Winters launched New Jersey-based Wintergreen Advisors, of which he is still CEO, and the Wintergreen Fund (ticker: WGRNX), in October 2005. It’s been a tough decade for value investors overall: The Russell 1000 Value Index has a 10-year annual return of 10.9%, compared with 15.1% for the corresponding growth index. Winters’ deep-value style of investing did not fare well in the past decade, and his fund landed at the absolute bottom of its Morningstar category over one-, three-, five- and 10-year periods.
“About four years ago, we noticed that value investing had stopped working the way it had always worked,” Winters told Barron’s a year ago, when assets were $300 million. More recently assets were $100 million, according to Morningstar.
This question is even more relevant for those who manage their own money. Professional money managers earn a fee despite negative performance. The rest do not have this luxury when their method stops working.
https://www.barrons.com/articles/david-winters-shuts-down-wintergreen-fund-51556053428
The once-lauded value investor David J. Winters is shutting down his fund.
It’s no doubt a difficult result for a fund manager whose star shone brightly early in the new century.
Winters launched New Jersey-based Wintergreen Advisors, of which he is still CEO, and the Wintergreen Fund (ticker: WGRNX), in October 2005. It’s been a tough decade for value investors overall: The Russell 1000 Value Index has a 10-year annual return of 10.9%, compared with 15.1% for the corresponding growth index. Winters’ deep-value style of investing did not fare well in the past decade, and his fund landed at the absolute bottom of its Morningstar category over one-, three-, five- and 10-year periods.
“About four years ago, we noticed that value investing had stopped working the way it had always worked,” Winters told Barron’s a year ago, when assets were $300 million. More recently assets were $100 million, according to Morningstar.
