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 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 | 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...
by Steven Quimby | Jan 19, 2021 | Portfolio Construction, Process Alpha
SFT’s Candidate Portfolio Analysis Summary: Fund managers often have an incomplete view of the key drivers of P&L in their portfolio. As a result it is difficult to pinpoint what they’re good at and where they can improve. Sherpa Funds Tech created the...
