Value fund managers lose out while growth fund managers profit from style drift.
The article explores how mutual fund managers sometimes invest in stocks that don't match their fund's stated style. Value fund managers often buy growth stocks, while growth fund managers sometimes invest in undervalued value stocks. Surprisingly, growth fund managers earn higher returns by investing in value stocks, while value fund managers don't benefit from deviating from their style. Small-cap value fund managers are the most likely to stray from their stated objective.