Variations on value: A closer look at U.S. value investing

Jacob M. Gerber

KEY TAKEAWAYS

  • Diversification from growth equities could be on the cusp of a sustained turnaround, given valuation and macro tailwinds.
  • For advisors and investors looking to reallocate, an appreciation of the diversity within the U.S. value spectrum is warranted.
  • Moreover, passive implementation within the value space can introduce various risks that select active managers may be able to avoid.

Value has been hiding in plain sight. Market leadership has been narrow, valuations have been stretched and the gap between the strongest and weakest names has widened. Our latest research shows that as the market has begun to broaden, value is gaining traction again, but the opportunity is not uniform.
 

In this whitepaper, we examine how some value approaches may be better positioned to benefit in a market shift away from concentrated growth, while others carry risks or characteristics that passive screens can miss.
 

For institutional investors reassessing equity exposure, this piece highlights where dispersion is creating entry points and why a clear view of the full value spectrum can make a difference in portfolio construction.

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Jacob M. Gerber is an equity and multi-asset investment director with 28 years of investment industry experience (as of 12/31/2025). He holds a bachelor’s degree in biology from University of California, Los Angeles.

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Passive funds are not striving to outpace their benchmarks; rather, they seek to replicate the benchmark's return pattern.