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Consultants warn of value traps

Bad performance has left many managers desperate to repair their reputation with clients

Tesco's share price has fallen in recent years
Tesco's share price has fallen in recent years Photo: iStockPhoto

Value investors need to up their game after a period of poor performance, consultants have warned.

Value strategies have outperformed over the years by identifying companies with share prices lower than their underlying value. But consultants say investors now need to be careful to avoid companies whose business model have strategic weaknesses, including vulnerability to new technology or adverse economic shifts.

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