Large-cap tech growth strategies aren't the only way forward for navigating the U.S. equity market. The BNY Investments team recently published an insights post explaining why value equities might be worth a closer look right now.
With all the worries over macroeconomic uncertainty this year, it's difficult to imagine very many expected cyclical stocks to perform exceptionally well. However, it seems that cyclicals are finally having their moment in the sun.
With 2025 well over halfway finished, it's likely no understatement to say a good number of U.S. equity strategies have been on a rocky journey this year. Fueled by inflation worries and ongoing tariff threats, many equities within the S&P 500 saw significant underperformance in March and April.
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The company in question is a fund dedicated to investing in what is termed as 'value companies.' Value investing is a principle based on the idea of investing in companies that appear to be undervalued in the market but have strong fundamentals and the potential for substantial growth. These companies are typically assessed by their sub-adviser, NIMNA, which plays a crucial role in determining the investment strategy. By focusing primarily on stocks, and more specifically on common stocks, the fund aims to capitalize on the market's valuation inefficiencies to generate returns for its investors. With a strategy that involves investing at least 80% of its net assets, in addition to any borrowings for investment purposes, the fund is committed to maintaining a significant position in these value companies, demonstrating a clear focus on this investment thesis.
The fund focuses on offering investment opportunities in value companies through a variety of financial products and services. These include: