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Value stocks get the upper hand

Growth investing has ceded ground to value investing in the US, with many growth investors taking their lumps, especially in smaller stocks

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Run on value stocks: Small-cap growth funds in the US were hit hard this spring but recovered some momentum in June and ended up 0.9 per cent, on average, for the first six months. But small-cap value funds gained 4.7 per cent. - PHOTO: AFP

IN 2013, the Buffalo Emerging Opportunities fund returned a stunning 61.7 per cent. Lipper, which tracks mutual funds, named it the best small-capitalisation growth fund over the previous three and five years, and investors stormed in. It began 2013 with just US$66 million in assets and