Identifying Value Stocks and Predicting a Regime Change

In this chapter, the speaker discusses the concept of value stocks and how to identify good ones. They interview Richard Taft, who co-manages the Columbia Select Large Cap Value Fund, to get insights into his investment strategy. Richard emphasizes the importance of active share, predicts a regime change with higher interest rates in the future, and discusses factors that may contribute to elevated interest rates such as a shift away from globalization and a push for domestic manufacturing. He also highlights the potential for value stocks to outperform growth stocks and the benefits of investing in commodities and manufacturing. Richard emphasizes that their portfolio management approach is macro aware but not macro driven.