We Asked a $17B International Manager Why Value is Winning Again — and What the S&P 500 Leaves Out

Value investing has evolved from a traditional focus on "deep value" and hard assets toward identifying quality compounders and businesses with intangible assets. Macroeconomic shifts, including rising interest rates and inflation, have revitalized the sector by improving prospects for financials and industrials. International markets, specifically Japan and Korea, present compelling opportunities driven by corporate governance reforms and active restructuring efforts that unlock shareholder value. While artificial intelligence represents a significant, capital-intensive theme, its long-term impact on incumbent business models remains in the discovery phase. Portfolio managers must balance concentration with diversification, utilizing research-intensive processes to identify mispriced cash flows. Ultimately, successful value investing requires resisting market narratives during extremes and maintaining a long-term perspective on intrinsic value rather than reacting to short-term quarterly earnings volatility.