Tag Archives: portfolio concentration
Equity: Diversity and Inclusion
We can think of an active equity portfolio as a combination of a benchmark (the S&P 500®, for example) and a set of active bets that measure the portfolio’s deviation from the benchmark. The relative size of the active bets is sometimes called “active share,” and is a convenient way to judge a manager’s aggressiveness….
- Categories Equities, S&P 500 & DJIA
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The Distribution of Alpha
Investment management is a zero sum game. The source of outperformance for a market’s outperformers is the underperformance of the same market’s underperformers. Properly measured, the weighted average sum of the winners’ gains is exactly equal (before costs) to the weighted average sum of the losers’ losses. This identity, along with the professionalization of the…
- Categories Equities, S&P 500 & DJIA
- Other Tags
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- Equities, S&P 500 & DJIA
- Other Tags