Avi Lavi
29 Years at AB|34 Years of Experience
Avi Lavi was appointed Chief Investment Officer of Global and International Value Equities in March 2016 and has also been Portfolio Manager for Global Research Insights since May 2016. He has been a member of the Cross Border team since early 2012. Previously, Lavi served as co-CIO of Global Value Equities (since July 2014) and global director of Value Research (since early 2012). From 2006 to 2012, he was CIO of UK and European Value Equities, and director of research for UK and European Value Equities from 2000 to 2006, during which time he helped establish AB’s first research operation based outside the US. Lavi joined the firm in 1996 as a research associate for utilities and expanded his coverage in 1998 to include oil and gas, covering these industries on a global basis. He subsequently became a senior analyst and sector leader for energy research. Lavi was previously an assistant controller at the State of Israel Economic Offices in New York. Prior to that, he was an accountant with Kesselman & Kesselman, PwC’s Israeli affiliate. Lavi holds a BA in accounting and economics from Bar-Ilan University in Israel and an MBA from New York University. Location: London
Published Work
Mounting inflation and rising interest rates are creating conditions for a broader value recovery, particularly for companies with solid business fundamentals.
Value stocks are once again facing questions about an uncertain future after a seven-month value rally through May. But there are still good reasons to anticipate a renewed recovery.
Has the value recovery has run its course? We don't think so. Three big trends that fostered a historic run-up in growth stock multiples over several years have only just begun to unwind.
Global value stocks still trade at a near-record discount to growth stocks, even after handily outperforming since November. That’s a huge turnaround after growth stocks had dominated for many years. So what was behind the prolonged winning streak for growth that created today’s extreme valuation gap?
After a strong rally for value stocks in recent months, some investors are wondering if the rebound will continue. We think several forces are unfolding that should support a continued value resurgence as the world emerges from the ravages of the pandemic.
Market trends in early 2021 have raised hopes that a sustainable recovery for value stocks is under way. However, after a decade of underperformance, many investors are understandably skeptical. To gauge the opportunity, we analyze the scale and causes of the extreme dislocation in equity valuations from several perspectives. By determining what it would take for value stocks to stage a sustainable comeback, we then evaluate the potential payoff for investors who are willing to initiate, expand or rebalance allocations to value stocks today.
Growing challenges to banks have weighed on recovery hopes for value stocks. But our research of Japan's experience and global value trends suggests value stocks don't necessarily need financials to turn the corner.
Value stocks have underperformed in the coronavirus crisis. Yet some higher-quality companies are now trading at valuations that underestimate their ability to withstand shorter-term stress-and their longer-term recovery potential.
Global value stocks have continued to underperform in 2019. But there's a big disconnect between the weak returns of cheaper stocks and their underlying earnings profile.
Value stocks have underperformed for years. But things may be changing. Cheaper stocks have shown signs of awakening recently, and several market forces could tip the scales in favor of value after a prolonged growth surge.
After a record 2017, private equity funds have $1 trillion to deploy. The Financial Times reported this week that the buyout industry is raising more money than it can spend. As new risks surface, we think public equity portfolios with the right strategic mindset can deliver similar benefits to investors.