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Philosophy | Markets | Traditional | Portfolio | Stock Returns | Fixed Income
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Strategic Capital's Value-added Management
- Grounded in the efficiency of capital markets.
- Captures specific dimensions of risk identified by academic
research.
- Minimizes transaction costs and enhances returns through trading
and engineering.
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Traditional Active Management
- Attempts to beat the market through security selection and market
timing.
- Undermines asset class exposure to keep up with the most "promising"
securities.
- Generates higher fees, trading costs, and taxes due to increased
turnover.
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Traditional Passive/Index Management
- Accepts asset class returns.
- Allows commercial benchmarks to define strategy.
- Sacrifices transaction costs and turnover in favor of tracking.
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