TY - JOUR T1 - Value and Growth, Theory and Practice JF - The Journal of Portfolio Management SP - 22 LP - 30 DO - 10.3905/jpm.2007.684749 VL - 33 IS - 3 AU - John S. Brush Y1 - 2007/04/30 UR - https://pm-research.com/content/33/3/22.abstract N2 - 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 ER -