There is also some overlap between growth and value indices, underscoring the notion that style is a classification convention rather than a durable economic identity. In practice, distinguishing durable value from superficial cheapness requires a broader assessment of the underlying business, paired with a framework designed to mitigate value traps and respond as fundamentals shift.

In a new white paper, long-time value investors Boston Partners explore the fluid nature of value classifications and outline how they assess intrinsic value using their time-tested ‘Three Circles’ process. This seeks companies at the intersection of good value, strong fundamentals and forward momentum to identify and act on equity market opportunities.