Value investing may have underperformed growth in the past decade. Nevertheless, value stocks play an indispensable role when constructing a portfolio and actually outperform growth over the longer term, said John Linehan, portfolio manager at T. Rowe Price. 'Typically in a rising rate environment value will outperform growth,' said Linehan. 'And this is a market that has been dominated by a select group of companies and I think going forward that breaks and when it breaks value will do fairly well relative to growth.' Linehan is taking over portfolio management of the T. Rowe Price Equity Income Fund (PRFDX) at the end of this month. Linehan is bullish on Loews Corporation (L), which has seen its shares drop over 13% in 2015. Linehan said the selloff is overblown because the market is focusing on weakness in the conglomerate’s Diamond Offshore drilling subsidiary even though it only makes up around 15% of the company’s asset value. 'It’s trading at a 20% discount to its sum of the parts,' said Linehan. 'I think just looking at the underlying value makes sense.' Staying in the oil patch, Linehan is also positive on Apache Corp. (APA) despite the fact that the oil and natural gas driller’s shares have dropped over 28% so far this year.