Jeremy Grantham, the iconic value investor who correctly foresaw the stock bubbles of 2000 and 2008, cut jobs at his firm as its assets have shrunk by $44 billion in the past two years.

The co-founder and chief strategist of Boston money manager Grantham Mayo Van Otterloo & Co. has weathered market turmoil as investment styles have come in and out of favor during the firm’s 40-year history.

This time is different in the severity of investor redemptions. The firm’s assets have shrunk to about $80 billion from a peak of $124 billion in June 2014, according to The Wall Street Journal. The firm in June cut 10 percent of its workers, or 65 people.

“Bearish about what it sees as high valuations of U.S. stocks, GMO’s flagship mutual fund, the GMO Benchmark Free Allocation fund, has largely missed out on the latest rally in U.S. stock indexes,” the newspaper reports.

The fund gained by 3.4 percent in 2016, compared with an increase of 5.7 percent among fund with similar investment styles, according to Morningstar Inc. Meanwhile, the S&P 500 rose 12 percent including dividends last year.

While growth funds have gained favor among investors, GMO sees stocks as too expensive. Grantham in 2015 said the Federal Reserve’s zero-interest rate policy had pushed equities toward “bubbleland.”

“Expensive markets have historically provided very poor risk-reward trade-offs,” said Ben Inker, GMO’s head of asset allocation. “Our belief in the power of value has not wavered, it does not make sense to chase expensive markets ever higher.”

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