Many investors like to put managers into a style box but being in a box is dangerous when there is a large dispersion in style factors. November was the second positive month in a row for the SPX, but styles provide a different story. Momentum was up only 3.3% while Quality was up over 7%. The year to date shows a dispersion of over 25% between growth and value. In fact, high dividend and value are both up for the year. The last two years value underperformed the overall index.
The effective manager must be style neutral or style conditional to win in a changing market.
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