For 100 years, Value has outperformed Growth stocks. But in the last 13 years, Growth has outperformed Value by over 300%. Why? We believe it is due to the proliferation of algorithms, derivatives, and ETF’s into the stock market.

These algorithms have fueled continued investments in large cap growth stocks even as new highs are reached and valuations become more extreme, hence, even more buying. This in turn has led to the technical shorting of lower-priced value stocks. We believe these factors create a buying opportunity that these programs have over looked and yielding us superior returns. This is our advantage!

We have developed a strategy to outperform the bots at their own game. We can identify what the bots are targeting and use this as a buying or selling opportunity to our advantage. We typically invest in value stocks that have a catalyst or group of catalysts that will likely trigger the bots and algorithms hence, reverse their targeted companies – readying to a upward trend.