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Article: Mandate Research: Styles of equity management - Growth versus value - Stop being a slave to style.(Brief Article)
- Article from:
- Financial Times Mandate
- Article date:
- July 15, 2002
CopyrightCOPYRIGHT 2002 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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High profile corporate accounting scandals in the US, coupled with tumbling stock markets, have focused attention on equity management styles. Pursuing a value-based strategy, New York-based Alliance Capital suffered as WorldCom's shares slumped - it had built a 7 per cent stake in the telecoms company to become its largest shareholder. Yet growth strategies have been out of favour since the high-tech share bubble burst two years ago.
Grappling to understand which strategy offers the best returns is likely to be a subject of intense debate. Whether equity managers continue to be style slaves may be answered in the next few months.
A value manager seeks ...