Value and growth traps – How to avoid both and beat the market

Previously an actuary, Andrew Martin knows the importance of “valuing future financial risk” within investing better than most, especially in a world of relentless information flow and unexpected bouts of volatility. “Whenever you think you are smarter than the market, you are probably wrong.”

Alphinity Investment Management has never committed to being purely quantitatively or fundamentally-driven, instead, they derive the best of both to inform their decision making. This underpins Martin’s focus on Earnings Leadership, a concept seemingly vacant from the broader market spectrum as P/E ratios balloon and investors display an unprecedented affinity towards high revenue multiples.

In this CIO profile, Andrew offers an insight into the apparent disconnect between equity markets and the economy, and the importance of balancing trust in your investment philosophy with evolving market trends. He also discusses how understanding a company’s story and underlying earnings quality is the key to avoiding growth and value traps.