So I'm anticipating my portfolio is less correlated to the market and therefore will
outperform in a downturn....
Not exact matches
During the 2008 US market
downturn, 60 % of actively managed US equity funds
in the US
outperformed the market.
From the cumulative RealAlpha ™ chart, it follows that, despite the «defensive» nature of its holdings, the fund may not always
outperform during market
downturns, such as
in 2008 - 09.
They are looking for companies that they believe are «reasonably priced, and have strong fundamental business characteristics, sustainable earnings growth and the ability to
outperform peers over a full market cycle and sustain the value of their securities
in a market
downturn, while [trying to] avoid investments
in companies that it believes have low profit margins or unwarranted leverage, and companies that it believes are particularly cyclical, unpredictable or susceptible to rapid earnings declines.»
When one is paying management fees for the investment
in active funds, one might reasonably expect the funds to
outperform benchmarks and resist
downturn when the market is volatile.
Office was obviously hit pretty hard
in the
downturn, especially suburban office, and we're seeing CBD or general urban office property
outperforming suburban because there's a flight to quality, to move into walkable transit - oriented projects, which is certainly where capital is focused, whether it's debt or equity.
My prediction is that those brokers that do this best will
outperform the industry and insulate themselves from disaster
in a future
downturn.