Shareholder Engagement
Engagement vs. Activism Shareholder engagement involves portfolio managern use a proxy vote to strengthen their influence collectively, allowing absentee shareholders to delegate their votes. The services of external proxy advisory firms' or other shareholders' active participation in a company's affairs….
Earnings Linked to Ownership and Management of an Equity Portfolio
Potential Forms of Income Dividend Income Dividend income arises from companies that generate surplus cash flows beyond their operational needs. Dividends reflect financial responsibility, significantly when firms increase these payments. Dividend income is commonly associated with value stocks and appeals…
Segmentation of Equity Investment Universe
Equity Investment Style Box $$ \begin{array}{c|c|ccc} & & & \textbf{Style} & \\ \hline & & \textbf{Value} & \textbf{Blend} & \textbf{Growth} \\ & \textbf{Large} & \text{Large-cap value} & \text{Large-cap blend} & \text{Large-cap growth} \\ \textbf{Size} & \textbf{Mid} & \text{Mid-cap value} &…
Introduction and the Significance of Equities in a Portfolio
Capital Appreciation One of the primary sources of equity return is capital appreciation. This happens when an investor buys a stock and sells it for a higher price, making a profit. Capital appreciation often receives favorable tax treatment in many…
Study Notes for CFA® Level III – Passive Equity Investing – offered by AnalystPrep
Reading 24: Passive Equity Investing Los 24 a: Discuss considerations in choosing a benchmark for a passively managed equity portfolio Los 24 b: Compare passive factor-based strategies to market-capitalization-weighted indexing Los 24 c: Compare different approaches to passive equity investing…
Study Notes for CFA® Level III – Active Equity Investing: Strategies – offered by AnalystPrep
Reading 25: Active Equity Investing: Strategies Los 25 a: Compare fundamental and quantitative approaches to active management Los 25 b: Analyze bottom-up active strategies, including their rationale and associated processes Los 25 c: Analyze top-down active strategies, including their rationale…
Study Notes for CFA® Level III – Active Equity Investing: Portfolio Construction – offered by AnalystPrep
Reading 26: Active Equity Investing: Portfolio Construction Los 26 a: Describe elements of a manager’s investment philosophy that influence the portfolio construction process Los 26 b: Discuss approaches for constructing actively managed equity portfolios Los 26 c: Discuss approaches for…
Study Notes for CFA® Level III – Hedge Fund Strategies – offered by AnalystPrep
Reading 27: Hedge Fund Strategies Los 27 a: Discuss how hedge fund strategies may be classified Los 27 b: Discuss investment characteristics, strategy implementation, and role in a portfolio of equity-related hedge fund strategies Los 27 c: Discuss investment characteristics,…
Hedge Fund Strategy Portfolio Contributions
Performance Contribution to a 60/40 Portfolio What is the potential impact of adding a hedge fund allocation to the traditional 60/40 (stock/ bond) portfolio? Consider a traditional 60%/40% portfolio. 20% allocation of a hedge fund strategy group is added…
Assessing Hedge Fund Strategies through a Conditional Factor Risk Model
Different hedge fund strategies exhibit unique risk factor exposures and vulnerabilities. Linear factor models, like the conditional factor model used in this analysis, offer valuable insights into hedge fund investments' inherent characteristics and risks. These models help assess whether hedge…
