Defensive equity strategies may have obvious appeal – especially right now – but how do you distinguish between similar-sounding strategies? A brief perusal of managers’ descriptions of their defensive equity strategies reveals a lot of similar terms with different meanings, and vice versa.
Portfolio Management - Risk Mitigation and Asset Allocation Decisions
Portfolio risk and asset allocation go hand in hand. Besides merely being cognizant of each type of specific risk, which risks should one focus upon managing, and what are the ways in which these decisions influence asset all
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." - Ludwig von Mises
If history is any guide, we should be closer to the end than the beginning of a bull market in equities – the largest source of risk for most portfolios. This is particularly the case as the extreme measures used to stabilize the world economy as the throes of the Global Financial Crisis are winding down, while political risk is on the rise, including in major developed economies.
Filippo Curti, Marco Migueis, and Robert Stewart | The Federal Reserve's Comprehensive Capital Analysis and Review (CCAR) requires large bank holding companies (BHCs) to project losses under stress scenarios. In this paper, we propose multiple benchmarks for operational loss projections and document the industry distribution relative to these benchmarks. The proposed benchmarks link BHCs' loss…
As a market share leader in defensive equity investing,1 we’ve heard the gamut of issues raised on this topic by clients and consultants. After all, equity returns with less volatility is an alluring proposition. There must be a price to pay. There must be other risks to consider.
Investors are increasingly interested in a rapidly-growing investment approach that considers their values and beliefs when selecting and managing their portfolio. Consideration of environmental, social and governance (ESG) issues has captured the attention of institutional investors worldwide, but understanding what to do about them is more challenging.