by Richard Waddington | Aug 5, 2022 | Portfolio Construction, Risk Management
We have often described how Sherpa Funds Technology helps Portfolio Managers generate better returns from their asset selection and convictions, and we have gone into some detail about how we do this, and what the Sherpa process involves. So now let’s look at the...
by Steven Quimby | Jul 13, 2022 | Asset Management, Portfolio Construction, Process Alpha
Have You Considered Running a Center Book? Multi-manager and multi-analyst fund management organizations generate a huge amount of asset selection information with the potential to add alpha to the firm, but few truly maximize the value of that information in the...
by Richard Waddington | May 18, 2022 | Asset Management, Portfolio Construction, Position Sizing, Risk Management, Stocks
Portfolio Managers need to balance many competing objectives and constraints while expressing their views across a large number of assets. This is a complex problem and it is hard to find a way of showing that the solution (the invested portfolio) meets these...
by Steven Quimby | Apr 11, 2022 | Portfolio Construction, Process Alpha
Do You Understand Why Portfolio Construction Matters? Traders often say the right idea at the wrong time is as bad as the wrong idea. Similarly, a poorly constructed portfolio of good ideas can destroy most, or even all, of the alpha in a PM’s stock selection. Despite...
by Richard Waddington | Feb 11, 2022 | Portfolio Construction
In the world of Asset Management, the Portfolio Manager is King. I write ‘King’ as it remains a profession dominated by men: according to Morningstar, 86% of portfolio managers in 2021 were men, a proportion that has remained unchanged for 20 years. This blog is not...
by Steven Quimby | Jun 23, 2021 | Portfolio Construction, Process Alpha, Risk Management
Know Your Factor Risk Bets Summary: Residual factor risk is a critical consideration in the portfolio construction process. The reversal of long-standing factor trends in 2020 and 2021 have underlined the importance of Knowing Your Factor Bets. Factor shocks can...
by Steven Quimby | May 3, 2021 | Equities, ORS Systematic Thematics
ORS Systematic Cannabis Portfolio Summary: Systematic portfolio construction techniques can help institutional investors build better thematic investment portfolios. In this example we create a long-only systematic Cannabis portfolio using the Sherpa’s...
by Steven Quimby | Apr 9, 2021 | Equities, Portfolio Construction, Process Alpha
Delivering The Long/Short Equity Portfolio Your Investors Want Summary: The equity long/short space is a very large but extremely competitive portion of the hedge fund universe. Different long/short equity portfolio strategies such as long-bias or pure market-neutral...
by Steven Quimby | Mar 25, 2021 | Portfolio Construction, Process Alpha
The Impact of Portfolio Constraints Summary: Very few fund managers really understand the impact of portfolio constraints on their ultimate results. While they spend a great deal of time and analytical effort on understanding their alpha ideas, comparatively little is...
by Steven Quimby | Mar 8, 2021 | Asset Management, Portfolio Construction, Process Alpha
The 3 Cs for Setting Portfolio Constraints Summary: Many fund managers have bad experiences using systematic portfolio construction tools because they ask the wrong question. Without a well-defined portfolio construction problem definition they end up with a...
