Man Group explores how traditional value investing struggles in modern markets, arguing that intangible assets and accounting distortions may obscure true company value. The paper suggests that adjusting for these factors materially improves outcomes, challenging the idea that value is structurally broken. It highlights how conventional metrics may understate profitability in asset-light businesses.
Value Is In The Eye Of The Beholder
Man Group
Dan Taylor
Research
9 Pages
Key Takeaways
Intangible Adjustment Impact: Adjusting for intangibles improves value strategy returns by roughly 3–5% annually versus traditional book-to-price approaches.
Accounting Distortion Effect: Over 30% of S&P 500 assets are now intangible, leading to systematic undervaluation in standard financial statements.
Sector Composition Shift: Technology exposure in value portfolios rises by nearly 20% when intangibles are capitalized, reducing traditional sector biases.
Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week
Related Content
