PT  - JOURNAL ARTICLE
AU  - John S. Brush
TI  - Value and Growth, Theory and Practice
AID  - 10.3905/jpm.2007.684749
DP  - 2007 Apr 30
TA  - The Journal of Portfolio Management
PG  - 22--30
VI  - 33
IP  - 3
4099  - https://pm-research.com/content/33/3/22.short
4100  - https://pm-research.com/content/33/3/22.full
AB  - The definition of value-based investing is widely accepted by both academics and practitioners, but there is confusion and disagreement as to the definition of growth-based investing. There is some statistical support for generic value and growth multifactor ranking models. Given different holding-period sensitivities of alpha potential for value and growth, there appear to be two ways to exploit the two styles: the typical combining of pure styles in a portfolio, or the less widely recognized use of a combined value/growth model. One important conclusion is that active style exploitation of alpha is inherently incompatible with capitalization-weighted benchmarks.TOPICS: Security analysis and valuation, fundamental equity analysis, portfolio construction