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Tactical Asset Allocation
Tactical asset allocation (TAA) is a dynamic investment strategy that actively adjusts a portfolio's asset allocation. The goal of a TAA strategy is to improve the risk-adjusted returns of passive management investing. Strategy descriptions TAA strategies can be either discretionary or systematic. Discretionary In discretionary tactical asset allocation strategies, an investor modifies his asset allocation according to the valuation of the markets in which they are invested. Thus, someone who invested heavily in stocks might reduce their position when they perceive that other securities, such as Bond (finance), bonds, are poised to outperform stocks. Unlike stock picking, in which the investor predicts which individual stocks will perform well, tactical asset allocation involves only judgments of the future return of complete markets or sectors. As such, some practitioners perceive it as a natural supplement to mutual fund investing, including passive management Passive ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Portfolio (finance)
In finance, a portfolio is a collection of investments. Definition The term "portfolio" refers to any combination of financial assets such as stocks, bonds and cash. Portfolios may be held by individual investors or managed by financial professionals, hedge funds, banks and other financial institutions. It is a generally accepted principle that a portfolio is designed according to the investor's risk tolerance, time frame and investment objectives. The monetary value of each asset may influence the risk/reward ratio of the portfolio. When determining asset allocation, the aim is to maximise the expected return and minimise the risk. This is an example of a multi-objective optimization problem: many efficient solutions are available and the preferred solution must be selected by considering a tradeoff between risk and return. In particular, a portfolio A is dominated by another portfolio A' if A' has a greater expected gain and a lesser risk than A. If no portfolio dominates A ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Tolerance
Risk appetite is the level of risk that an organization is prepared to accept in pursuit of its objectives, before action is deemed necessary to reduce the risk. It represents a balance between the potential benefits of innovation and the threats that change inevitably brings. This concept helps guide an organization's approach to risk management. Risk appetite factors into an organization's risk criteria, used for risk assessment. Definition ISO 31000 defines risk appetite as the "amount and type of risk that an organization is willing to pursue or retain." Risk appetite is burdened by inconsistent or ambiguous definitions, but rigorous risk management studies have helped remedy the lack of consensus. This remainder of this section compares the standardized definition of risk appetite with other related terms. Risk threshold Since risk appetite can be stratified into levels of risk, risk threshold can be defined as the upper limit of risk appetite. Risk threshold can also be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
CBS News
CBS News is the news division of the American television and radio broadcaster CBS. It is headquartered in New York City. CBS News television programs include ''CBS Evening News'', ''CBS Mornings'', news magazine programs ''CBS News Sunday Morning'', ''60 Minutes'', and ''48 Hours (TV program), 48 Hours'', and Sunday morning talk show, Sunday morning political affairs program ''Face the Nation''. CBS News Radio produces hourly newscasts for hundreds of radio stations, and also oversees CBS News podcasts like ''Major Garrett, The Takeout Podcast''. CBS News also operates CBS News 24/7, a 24-hour digital news network. Up until April 2021, the president and senior executive producer of CBS News was Susan Zirinsky, who assumed the role on March 1, 2019. Zirinsky, the first female president of the network's news division, was announced as the choice to replace David Rhodes (CBS News President), David Rhodes on January 6, 2019. The announcement came amid news that Rhodes would step do ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
GMO LLC
GMO LLC (also known as GMO and Grantham, Mayo, Van Otterloo & Co. LLC) is an American investment management firm headquartered in Boston. The firm takes a contrarian investing and generally bearish approach to the markets and holds the views that assets will revert to the mean. As a result, the firm has successfully called economic bubbles. At its peak in 2007, the firm had $155 billion in assets under management (AUM) although it has declined since. Outside Boston, the firm has offices in Amsterdam, London, San Francisco, Singapore, Sydney and Tokyo. Background Jeremy Grantham, Dick Mayo and Eijk van Otterloo founded GMO in Boston in 1977. Prior to that Grantham and Mayo founded Batterymarch Financial Management in 1969 while Van Otterloo was a former colleague of Grantham. The three all were portfolio managers and GMO was launched as a conservative, value-oriented money management shop although it has expanded since. Since 1996, Van Otterloo has not had a day-to-d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
PIMCO
Pacific Investment Management Company LLC (PIMCO) is an American investment management firm. While it has a specific focus on active fixed income management worldwide, it manages investments in many asset classes, including fixed income, share capital, equities and other financial assets across public and private markets. PIMCO is one of the largest investment managers, actively managing more than $2 trillion in assets for central banks, sovereign wealth funds, pension funds, corporations, foundations and endowments, as well as individual investors around the world. According to the Sovereign Wealth Fund Institute, PIMCO is the 6th-largest asset manager in the world by managed Assets under management, AUM. PIMCO's headquarters are in Newport Beach, California, near the Pacific Ocean. The firm has over 3,100 employees working in 22 offices throughout the Americas, Europe, and Asia. PIMCO and Allianz Global Investors manage around Euro, €2.5 trillion of third-party assets. PIMCO ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Vanguard Group
The Vanguard Group, Inc. is an American registered investment adviser founded on May 1, 1975, and based in Malvern, Pennsylvania, with about $10.4 trillion in global assets under management as of 31 January 2025. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares. In addition to mutual funds and ETFs, Vanguard offers brokerage services, educational account services, financial planning, asset management, and trust services. Several mutual funds managed by Vanguard are ranked at the top of the list of US mutual funds by assets under management. Along with BlackRock and State Street, Vanguard is considered to be one of the Big Three index fund managers that play a dominant role in retail investing. Founder and former chairman John C. Bogle is credited with the creation of the first index fund available to individual investors and was a proponent and major enabler of low-cost inves ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Maximum Drawdown
The drawdown is the measure of the decline from a historical peak in some variable (typically the cumulative profit or total open equity of a financial trading strategy). Somewhat more formally, if X(t), \; t \ge 0 is a stochastic process with X(0) = 0, the drawdown at time T, denoted D(T), is defined as: D(T) = \max_X(t)-X(T) The average drawdown (AvDD) up to time T is the time average of drawdowns that have occurred up to time T:\operatorname(T) = \int_0^T D(t) \, dtThe maximum drawdown (MDD) up to time T is the maximum of the drawdown over the history of the variable. More formally, the MDD is defined as: \operatorname(T)=\max_D(\tau)=\max_\left max_ X(t)- X(\tau) \right/math> Pseudocode The following pseudocode computes the Drawdown ("DD") and Max Drawdown ("MDD") of the variable "NAV", the Net Asset Value of an investment. Drawdown and Max Drawdown are calculated as percentages: MDD = 0 peak = -99999 for i = 1 to N step 1 do # peak will be the maximum value seen so fa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sharpe Ratio
In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) measures the performance of an investment such as a security or portfolio compared to a risk-free asset, after adjusting for its risk. It is defined as the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns. It represents the additional amount of return that an investor receives per unit of increase in risk. It was named after William F. Sharpe, who developed it in 1966. Definition Since its revision by the original author, William Sharpe, in 1994, the '' ex-ante'' Sharpe ratio is defined as: : S_a = \frac = \frac, where R_a is the asset return, R_b is the risk-free return (such as a U.S. Treasury security). E _a-R_b/math> is the expected value of the excess of the asset return over the benchmark return, and is the standard deviation of the asset excess return. The t-sta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Standard Deviation
In statistics, the standard deviation is a measure of the amount of variation of the values of a variable about its Expected value, mean. A low standard Deviation (statistics), deviation indicates that the values tend to be close to the mean (also called the expected value) of the set, while a high standard deviation indicates that the values are spread out over a wider range. The standard deviation is commonly used in the determination of what constitutes an outlier and what does not. Standard deviation may be abbreviated SD or std dev, and is most commonly represented in mathematical texts and equations by the lowercase Greek alphabet, Greek letter Sigma, σ (sigma), for the population standard deviation, or the Latin script, Latin letter ''s'', for the sample standard deviation. The standard deviation of a random variable, Sample (statistics), sample, statistical population, data set, or probability distribution is the square root of its variance. (For a finite population, v ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Morningstar, Inc
Morningstar, Inc. is an American financial services firm headquartered in Chicago, Illinois, founded by Joe Mansueto in 1984. It provides an array of investment research and investment management services. With operations in 29 countries, Morningstar's research and recommendations are considered by financial journalists as influential in the asset management industry, and a positive or negative recommendation from Morningstar analysts can drive money into or away from any given fund. Through its asset management division, the firm currently manages over . The firm also provides software and data platforms for investment professionals, including "Morningstar Research Portal", "Morningstar Direct" and "Morningstar Advisor Workstation". History Founder Joe Mansueto initially had the idea for Morningstar in 1982 while reviewing mutual fund annual reports he had requested from several prominent fund managers. However, it was only after a year working as a stock analyst for Harris ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Forbes
''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The company is headquartered in Jersey City, New Jersey. Sherry Phillips is the current CEO of Forbes as of January 1, 2025. Published eight times per year, ''Forbes'' feature articles on finance, industry, investing, and marketing topics. It also reports on related subjects such as technology, communications, science, politics, and law. It has an international edition in Asia as well as editions produced under license in 27 countries and regions worldwide. The magazine is known for its lists and rankings, including its lists of the richest Americans (the Forbes 400, ''Forbes'' 400), of 30 notable people under the age of 30 (the Forbes 30 Under 30, ''Forbes'' 30 under 30), of America's wealthiest celebrities, of the world's top companies (the Fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Timing
Market timing is the strategy of making buying or selling decisions of financial assets (often stocks) by attempting to predict future market price movements (market trends). The prediction may be based on an outlook of market or economic conditions resulting from technical or fundamental analysis. This is an investment strategy based on the outlook for an aggregate market rather than for a particular financial asset. The efficient-market hypothesis is an assumption that asset prices reflect all available information, meaning that it is theoretically impossible to systematically "beat the market." Approaches Market timing can cause poor performance. After fees, the average "trend follower" does not show skills or abilities compared to benchmarks. "Trend Tracker" reported returns are distorted by survivor bias, selection bias, and fill bias. At the Federal Reserve Bank of St. Louis, YiLi Chien, Senior Economist wrote about return-chasing behavior. The average equity mutual fund ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
