Overview of Equity Portfolio Management

Question 1

What is the best moment to invest in equity ?

Answer 1

Equities perform well during strong phase. They are very cyclical and can provide diversifications with other asset classes. Inflation has an ambiguous impact equities. Firms that have the capacity to pass along higher costs to consumer can benefit. Equity are characterized by factor attribute such as growth potential, income generation, risk and return vola

Question 2

What are equity investment characteristics ?

Answer 2

Liquidity requirement 
Time horizon
Tax concern 
Legal and regulatory factor 
Unique circumstances (ESG)

Question 3

Elaborate on the segmentation matrix

Answer 3

Value Core Growth
LCap
MCap
SCap

Question 4

Elaborate on Ancillary Investment Strategies

Answer 4

Dividend capture
Covered call
Security lending (0.2% to 0.5% annually)

Question 5

Elaborate on fees structure for PM

Answer 5

Management fees are based on AUM. Beside we have performance fees. A
Additionally we have costs such as employees, advertising , sponsorship and distribution, sales commission.

Question 6

Tips on equity investments

Answer 6

The large CAP are best managed passively and small CAPs actively.