Sentences with phrase «factor bets»

In a follow - up blog, we will provide additional framework through which active factor bets taken by large - cap active managers are evaluated.

Be aware that you are likely embedding factor bets on steroids, which can blow up in the wrong market environment.

This kind of portfolio would be doubly exposed to its factor bets, which is great if the factor is in favor but potentially disastrous if it is out of favor.

However, the long / short value manager who is long value stocks and short growth stocks would be doubly exposed to such a factor bet.

The point of building a portfolio is to diversify away these factor bets, which we can not control or forecast, and focus our returns on the performance of individual companies.

Investors are often unaware that they are making a factor bet with their portfolios until it works against them.

However, this portfolio was nothing more than a factor bet on energy and favorable credit markets.

Using the holding of actively managed large - cap funds, we look at the traditional sources of long - only active management alpha — sector allocation decisions, security selection, and factor bets — to conduct the performance attribution analysis.

Performance, despite appearing black and white, is a lot trickier to measure than it seems like it should be — time periods, factor bets, portfolio structures, appropriate benchmarks, etc..