Fisher investments is an investment advisory firm founded by Ken Fisher. In 2020, the returns of Fisher investments’ equity strategies lagged behind the returns of the s&p 500 index. The s&p 500 returned 18.4% in 2020, while Fisher investments’ US Large Cap Core Equity strategy returned around 13%. This underperformance could be attributed to Fisher investments’ value-oriented investment style, as growth stocks significantly outperformed value stocks in 2020.
Fisher investments’ US Large Cap Core Equity strategy returned around 13% in 2020
According to a performance report from Fisher investments, their US Large Cap Core Equity strategy returned about 13% in 2020, lagging the 18.4% return of the s&p 500 index. This strategy aims to invest in large-cap US stocks across various sectors using fundamental analysis principles favored by Fisher investments.
Growth stocks drove the s&p 500’s strong returns in 2020
The s&p 500 index posted a stellar 18.4% return in 2020, driven largely by mega-cap technology and internet stocks like Apple, Microsoft, Amazon, Facebook and Alphabet (Google). These high-growth stocks significantly outperformed the broader market last year.
Fisher investments tends to have a value tilt in its stock selection
Fisher investments’ investment philosophy, based on founder Ken Fisher’s principles, tends to favor undervalued stocks with strong fundamentals and growth potential. This value-oriented approach has generally served Fisher investments well over the long run but lagged in 2020 as growth massively outperformed value.
In 2020, Fisher investments’ equity investment strategies underperformed the s&p 500 index, likely due to Fisher investments’ value focus versus the strong growth tilt of the index last year.