Cover and pages 2 and 5
The Death of Value Investing and the Dawn of a New Tech-Driven Investment Paradigm
August 2020 · 16 pages · Nasdaq 100, FTSE 100, DAX 30 and CAC 40, tech and non-tech, 1999 to 31 July 2020; Refinitiv, PitchBook, Yahoo Finance and Macrotrends data
The original research we produced and launched for Aquaa Partners: a quantitative case that value investing's core assumption had broken, setting more than two decades of total shareholder returns for tech against non-tech indices, and the risk carried to earn them. It became the analysis the financial press ran with.
One finding. Tech stopped being the risky side of the trade. Across 2009 to July 2020 the Nasdaq 100's average maximum loss in a year was 7.6 per cent against 12.7 per cent for the non-tech indices, while its compounded total shareholder return since 1999 reached 11,630 per cent against the FTSE 100 Non-Tech's 838 per cent: higher returns for less downside, which is the relationship value investing assumes cannot hold.
Status: Published August 2020, the first in Aquaa Partners' investment research series, and still on the firm's own site.
