Still, given that value funds did well from 2000 through 2002, Mr. Kinnel said, "these funds could be due for a period of good performance".
This research has been supported by National Science Foundation Awards #1600118, CAREER #1349716, Grow Iowa Value Funds, the start-up funds from Engineering Science and Mechanics Department at the Pennsylvania State University and the China Scholarship Council award #201308360128.
It is, if you consider that in February, investors poured $34 billion of new money into growth funds and withdrew $16 billion from value funds.
Indeed, as portfolios of value funds become more different from one another, the distinction narrows between value funds and so-called blend funds, which are designed to invest in both value and growth stocks.
In the last couple of years, one prominent value money manager after another either retired or was retired involuntarily as investors withdrew tens of billions of dollars from value funds.
The long-standing net outflow of money from value funds turned into a $100 million inflow in November, says research firm Strategic Insight.
But the lackluster returns of value funds have not resulted only from the general market decline.
After attracting nearly $50 billion of net inflows in the first five months of the year, value funds had a $10.5 billion net outflow from June to August, according to Lipper, a fund-tracking firm.
Coming soon to Sage Online: Eric Jacobson from Morningstar (Oct . 16at 8 30 PM EST) and Marty Whitman from Third Avenue Value Funds (Oct . 18at 5 00 PM EST).
