The potential efficacy of combining value and momentum factors has always been a consistent theme of my research. Our Trending Value strategy still identifies the best values in the market, with the added twist that it then chooses from that narrow list the stocks that have increased the most in price over the past six months. In other words, we’re looking at stocks that are still really cheap, but the market has started to take notice. I wasn’t surprised that it worked incorporating an element of price momentum can counteract value investors’ tendency to buy too early and fall into value traps but I’ll admit that I was surprised how well it worked.