%0 Journal Article %A Ran Leshem %A Lisa R. Goldberg %A Alan Cummings %A Barbara J. Mack %T Practical Applications of Optimizing Value %D 2016 %R 10.3905/pa.2016.4.1.158 %J Practical Applications %P 1-4 %V 4 %N 1 %X 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. %U https://pa.pm-research.com/content/iijpracapp/4/1/1.13.full.pdf