Is Benjamin Graham-Style Value Investing Dead? Yes, Says This Top Hedge Fund Manager

Benjamin Graham is widely considered to be the father of value investing, and many high-profile investors like Warren Buffett continue to find success following his principles 90 years after he first taught them. However, well-known private investor John Bader suggested recently that the style of value investing pioneered by Graham may not work any longer.

Q3 hedge fund letters, conference, scoops etc

Exceptions to the rule or new rules entirely?

One theme we’ve been seeing in hedge fund letters this year has been the oddness of the current market trends. Market situations are not always playing out the way we have come to expect them to over many decades, and exceptions to the rules are becoming relatively common. But does this really mean the basic value investing principles taught by Benjamin Graham have become obsolete?

We imagine many of our readers are answering this question with a resounding, “No!” However, John Bader, formerly of Halcyon Asset Management, seems to disagree. He told attendees at the Project Punch Card conference last week that he doesn’t think Benjamin Graham-style value investing works any longer.

ValueWalk heard Bader’s talk at the Project Punch Card Conference, which is touted as being focused on “value over the long-term.” In his talk, Bader addressed the question of whether it’s possible to “still be a value investor with a long-term orientation today.”