Lakonishok Screen

Josef Lakonishok is a professor-turned money manager and is one of the principals at Chicago-based LSV Asset Management, which manages over $6 billion in assets for both institutional and individual accounts. He has already created a stir in the finance community through his research in the field of behavioral finance. He questions the notion of a completely efficient market and believes that there are inefficiencies investors can exploit in order to outperform the overall market. This screen works on the concept of Value investing. Value outperforms growth, according to Lakonishok, because investors don't expect much from it. When a value stock does better than expected, investors are pleasantly surprised and more apt to reward the company by bidding up the stock.