Market Anomalies and Adaptive Strategies

Alpha Investments, an active equity investment firm, conducts a thorough analysis of market anomalies to enhance their portfolio performance. The firm focuses on various strategies that exploit these anomalies. An example is the well-documented 'value effect,' where undervalued stocks tend to outperform overvalued stocks over the long term.

Recently, some analysts have pointed out that this phenomenon may be declining, potentially due to increased investor awareness and improved market efficiency. In light of these observations, Alpha Investments is considering how to adapt its strategy to continue generating alpha.

Which of the following statements about market anomalies and Alpha Investments’ potential strategies is most accurate?