Value  

Kingswood prepares for 'renewed rotation' to value stocks

“As soon as you start moving further up the yield curve, if there’s some slope to that curve and you hold the bond for a certain period of time, the yield on that bond will decline with the passage of time.

“So as yields and prices have an inverse relationship, the yield goes down and the price goes up, so not only can you earn a small yield, but you can earn some capital appreciation.”

The second reason was that just because yields are low, it does not mean expected returns must also be low or zero.

“The trick is to find those [profitable] areas of the market," he said.

sally.hickey@ft.com