Question for the board
For those of you who are in organizations that run sector/industry neutral funds, how often is rebalancing done? Also, what are some typical restrictions for stock specific weights? I am particulary interested in a small cap sector neutral portfoilio but any help would be very much appreciated.
posted by Anonymous at
3:32 PM
4 Comments:
World T. Free, if it is a strict "neutral" fund, they would target a beta of 0 probably daily. Most funds are "long/short" which more likely means the manager has discretion to be net long or net short depending on values.
5% weighting is probably a good estimate for the max exposure for a single stock, at cost.
I just want to make one more post (three consecutive) so I can do hallmark mattkelly54 when he's on his game!
This would be a long only fund with the goal of staying sector neutral vs the Russell 2000 will the goal of achieving alpha entirely from stock selection.
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