A top value fund manager who nailed this year's market rotation gives his 3 top stock picks in the sector

Smead Capital Management, Elenathewise/iStock, Tyler Le/BI

• Bill Smead predicts value stocks will outperform growth as AI hype fades in the stock market.
• He warns of potential S&P 500 underperformance due to high market concentration and valuations.
• Smead highlights three value picks amid changes he sees in the housing market.

It's once again good to be a value investor. After a rough couple of years, the segment of the stock market is back to outperforming its growth counterpart.