Hunters of stocks selling at steep discounts to their underlying value racked up the biggest gains in managed equity accounts for the year ended June 30, according to PIPER, a manager performance database.
The median return for managed domestic overall equity accounts for the 12-month period was 24.1%, but value investors had a convincing claim on bragging rights: The median return for managed domestic value equity accounts was 28.3%, handily beating the 23.3% median figure turned in by managed domestic growth equity accounts.
Over the same period, the large-cap loaded S&P 500 index posted a 19.1% gain, while the small-cap focused Russell 2000 index jumped 33.4%.
For the year, the value hunter whose name dominated the winner's circle was Donald Smith & Co., Paramus, N.J. The boutique money manager, with $2.3 billion in assets under management, boasted four of the five top-performing managed domestic overall equity accounts for the year.
In first place at 86.5% was the Donald Smith & Co. Micro Cap Value portfolio, followed by the company's Large Cap Concentrated Value portfolio, with a 75.5% gain.
Breaking up the monotony was NorthPointe Capital LLC, Troy, Mich., whose Micro Cap Growth Strategy turned in the year's third best return of 69.9%. Rounding out the top five were Donald Smith's Midcap Value strategy and its All Cap Value strategy, with respective gains of 67.5% and 66.9%.