A value and momentum strategy is an approach to selecting investments that uses two measures together. The value measure favours assets that are inexpensive relative to a fundamental yardstick, as in value investing, such as a low price-to-book ratio. The momentum measure favours assets with strong returns over roughly the past year, as described under momentum. The strategy ranks assets on each signal or on a combined score, and is a form of factor investing.
The case for combining them is that their returns tend to move in opposite directions. Value buys what has fallen out of favour, while momentum buys what has been rising, so one often does well when the other struggles. A 2013 study by Clifford Asness, Tobias Moskowitz and Lasse Pedersen documented both effects across shares, bonds, currencies and commodities. The combination still suffers long weak spells and remains exposed to a momentum crash.