Investment advice Process Flashcards
1
Q
Passive management strategies
A
Not attempting to outperform market, just track it
Tracking error is a risk
Doesn’t require active intervention
2 main techniques - Buy and hold or Indexation (full replication, stratified sampling optimisation)
2
Q
Bottom up active management
A
Stock selected on own merits rather than selecting AA first
Stock picking methods are Value or GAARP (paying a premium for quality stock) (Growth at a reasonable price)
Contrariaosm - going against popular belief
Momentum
