Capital Markets: Winter 2019

Value Has Lagged ​ Performance

• In 2018, higher yielding large cap stocks generally outperformed, while more economically sensitive Value equities underperformed

4Q18 Excess Return (%)

2018 Excess Return (%)

2.2 2.0

1.3

1.4 1.1

0.9

0.4

0.3

-0.2 -0.2

-0.6

-1.0 -1.2 -1.4 -1.5 -1.5

-1.5 -1.5 -1.8

-2.3

-2.2

-5.8

Market Cap

Book / Price

EPS Growth

Debt / Equity

Market Cap

Book / Price

Price Volatility

EPS Growth

Dividend Yield

Debt / Equity

Trading Activity

Earnings / Price

Revenue / Price

Price Volatility

Dividend Yield

Relative Strength

Trading Activity

Earnings / Price

Revenue / Price

Relative Strength

Earnings Variability

Earnings Variability

Source: FactSet as of 12/31/18 using Northfield defined quantitative factors for the Northfield broad U.S. market database.

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