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 Richard Waddington | Oct 14, 2020 | Asset Management, Portfolio Construction
Art vs Science – Have we progressed since 1959? In 1959, the British scientist and novelist C.P. Snow gave a lecture on how art and science separated people. It caused a huge furor which has continued to this day. Snow argued that people who sat on one side of...
by Richard Waddington | Oct 14, 2020 | Asset Management, Portfolio Construction, Process Alpha, Uncategorized
Robo-Advisors, 2/3rds of the way there… It’s 2018, Robo-cop doesn’t yet exist, but Robo-Advisors are very much ‘in’. And it’s not hard to see why. Businesses like US-based Wealthfront and UK-based Nutmeg promise to build anyone a portfolio that suits their risk...
by Richard Waddington | Oct 2, 2019 | Portfolio Construction, Process Alpha
To build the perfect portfolio, answer these 4 questions It’s fair to say that good Portfolio Managers earn their keep. Building an investment portfolio is a rigorous process that involves research, knowledge and diligence, as well as good instincts and strong...
