TY - JOUR T1 - Practical Applications of Optimizing Value JF - Practical Applications SP - 1 LP - 4 DO - 10.3905/pa.2016.4.1.158 VL - 4 IS - 1 AU - Ran Leshem AU - Lisa R. Goldberg AU - Alan Cummings A2 - Mack, Barbara J. Y1 - 2016/07/31 UR - https://pm-research.com/content/4/1/1.13.abstract N2 - Optimizing Value Ran Leshem Lisa R Goldberg Alan Cummings Value investing is a central concept in finance, and its popularity has grown dramatically since Benjamin Graham and David Dodd first introduced it in their seminal work, Security Analysis , in 1934. In value investing, two of the most commonly cited measures of portfolio return are the book-to-price ratio (B/P) and the earnings-to-price ratio (E/P). Ran Leshem , Lisa Goldberg and Alan Cummings of Aperio Group evaluate the performance of strategies based on B/P and E/P in their article, Optimizing Value . They explain why B/P became the academic standard in the 1990s and discuss the wisdom of blending B/P and E/P metrics into optimized strategy formats. The team also looks at factor-based optimization and sector-neutral strategies that may help to achieve better performance. ER -