By The Asset Allocation Team at GMO

CUMULATIVE RUSSELL 1000 VALUE – RUSSELL 1000 GROWTH

• There are many eerie parallels between today’s Value/Growth relationship and what we witnessed during the 1999 era. In the late ’90s, Value was suffering from a multi-year period of underperformance. Value managers were getting fired, academic papers were being written about “the death of Value,” and clients of Value managers were losing faith and patience.
• The green line in this chart shows the cumulative performance of the Russell 1000 Value minus the Russell 1000 Growth. During the 5 years leading up to the 1999 period…. read more