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https://doi.org/10.21256/zhaw-30008| Publication type: | Bachelor thesis |
| Title: | Value versus growth : style factors during extraordinary times |
| Authors: | Oreskovic, Tia |
| Advisors / Reviewers: | Weibel, Marc |
| DOI: | 10.21256/zhaw-30008 |
| Extent: | 63 |
| Issue Date: | 2023 |
| Publisher / Ed. Institution: | ZHAW Zürcher Hochschule für Angewandte Wissenschaften |
| Publisher / Ed. Institution: | Winterthur |
| Language: | English |
| Subject (DDC): | 332.6: Investment |
| Abstract: | Value and growth investing have long been the subject of debate among investors due to their distinct characteristics and performance patterns. Growth stocks, driven by high sales and earnings growth rates, often command premium valuations based on expectations of future price appreciation. In contrast, value stocks trade at lower multiples and include companies facing economic challenges or declining popularity. The COVID-19 pandemic and the Ukraine-Russia conflict served as extreme market conditions, shedding light on the performance of these investment styles. This study critically examined their performance during these periods, aiming to uncover any significant differences between them amidst market turmoil. Additionally, the study explored the potential benefits of constructing a portfolio that combined value and growth strategies. By linking the portfolio weights to the US Purchasing Managers' Index, the goal was to generate higher returns. The investigation explored whether overweighting or underweighting the two styles within a portfolio can surpass the performance of individual style investments. Employing a mixed-method approach, the study included a literature review, quantitative analysis of the S&P500 Value Index and S&P500 Growth Index, and portfolio construction. The aim was to identify the drivers of performance, index returns, and assess the advantages of combining value and growth in a portfolio. During the COVID-19 pandemic, growth investing generally outperformed value investing due to the favorable positioning of growth companies in technology and healthcare sectors. The increased demand for digital services and remote work technologies, coupled with advancements in healthcare solutions, contributed to the positive performance of growth stocks. In contrast, value stocks faced challenges in industries heavily affected by the pandemic, such as energy, retail, and travel. The study acknowledged that the performance of value and growth investing can vary across different market conditions and timeframes. Notably, during the Ukraine-Russia conflict, value investing exhibited notable outperformance compared to growth investing. These findings emphasize the importance of considering the specific market conditions and timeframes when evaluating the performance of value and growth investing. The thesis underscores the complexity involved in timing market factors and highlights the need for careful analysis and assessment when constructing investment portfolios. Overall, the thesis emphasizes the significant divergence in performance between value and growth investing across different periods. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/30008 |
| License (according to publishing contract): | CC BY-NC-ND 4.0: Attribution - Non commercial - No derivatives 4.0 International |
| Departement: | School of Management and Law |
| Appears in collections: | BSc Betriebsökonomie |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 2023_Oreskovic_Tia_BSc_BO.pdf | 726.69 kB | Adobe PDF |  View/Open |
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Oreskovic, T. (2023). Value versus growth : style factors during extraordinary times [Bachelor’s thesis, ZHAW Zürcher Hochschule für Angewandte Wissenschaften]. https://doi.org/10.21256/zhaw-30008
Oreskovic, T. (2023) Value versus growth : style factors during extraordinary times. Bachelor’s thesis. ZHAW Zürcher Hochschule für Angewandte Wissenschaften. Available at: https://doi.org/10.21256/zhaw-30008.
T. Oreskovic, “Value versus growth : style factors during extraordinary times,” Bachelor’s thesis, ZHAW Zürcher Hochschule für Angewandte Wissenschaften, Winterthur, 2023. doi: 10.21256/zhaw-30008.
ORESKOVIC, Tia, 2023. Value versus growth : style factors during extraordinary times. Bachelor’s thesis. Winterthur: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Oreskovic, Tia. 2023. “Value versus Growth : Style Factors during Extraordinary Times.” Bachelor’s thesis, Winterthur: ZHAW Zürcher Hochschule für Angewandte Wissenschaften. https://doi.org/10.21256/zhaw-30008.
Oreskovic, Tia. Value versus Growth : Style Factors during Extraordinary Times. ZHAW Zürcher Hochschule für Angewandte Wissenschaften, 2023, https://doi.org/10.21256/zhaw-30008.
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