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| Type | Master's Thesis |
| Scope | Discipline-based scholarship |
| Title | The current state of Value Investing and the opportunity of Growth Investing to rise during the pandemic. |
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| Institution | University of Zurich |
| Faculty | Faculty of Business, Economics and Informatics |
| Number of Pages | 116 |
| Date | 2021 |
| Abstract Text | According to Lakonishok et al. (1994), the Value Investing strategy outperformed the Growth Investing Strategy in the past. However, Growth companies in the Information Technology sector are becoming more important in recent years, especially during the pandemic. In this thesis, we use S&P 500 stocks to sort them into portfolios based on multiples to differentiate between Value and Growth stocks during and before the pandemic. Similarly, we form portfolios based on other factors such as financials, sectors, and industries. As expected, the Growth portfolios outperform the Value portfolios during and before the pandemic. In addition, we also conclude that the Value portfolios are riskier during rare disaster using Maximum Drawdown, Sharpe Ratio, and Annual Standard Deviation as risk measurements. The sector Information Technology outperforms the market in general, where as the sector Energy in terms of both earnings and stock market performance suffered tremendously during the pandemic. Lastly, using second quarter earnings from 2020, we measure if new all-time highs of certain stocks are justified. |
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