Russell's take on the value-versus-growth debate

Multi-manager U.S. pool's holdings share some positive attributes.

Michael Ryval 15 October, 2015 | 5:00PM
Facebook Twitter LinkedIn

In the ongoing debate over the merits of value versus growth investing, some value proponents maintain that their style will again be superior when interest rates rise and liquidity starts to tighten. But according to David Hintz, head of the U.S. equity portfolio manager team at Seattle-based Russell Investments, both styles can thrive at the same time and work well when blended together.

"It would be convenient to have two buckets, and stocks in one category will do poorly and the other will do well, based on interest-rate changes," says Hintz, who oversees the Morningstar four-star-rated Russell Focused U.S. Equity Pool. "We actually think there are a lot of growth stocks and value stocks that have benefitted from high liquidity. It's not one area versus another." Moreover, Hintz argues that it's important to select stocks with specific reasons for owning them, rather than "just buying the whole category of value or growth stocks."

Available only in Canada, the multi-manager Russell Focused U.S. Equity is part of the Russell Sovereign Investment Program. It employs three sub-advisors who invest in a total of about 70 "best ideas."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
General Electric Co101.19 USD-0.95Rating
PepsiCo Inc154.42 USD-1.03Rating
Zoetis Inc Class A201.70 USD-1.11Rating

About Author

Michael Ryval

Michael Ryval  Michael Ryval, a regular contributor to Morningstar, is a Toronto-based freelance writer who specializes in business and investing.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies