Good equity managers have a very clearly defined way of constructing and
managing their portfolios.
"Stock pickers" concentrate
almost exclusively on individual "stock selection" using classical
financial analysis. "Sector rotators" "time" the market by assessing economic and financial market trends
and selecting stocks in countries, industries and sectors that their analysis
shows as attractive. "Quantitative managers" use computers and mathematical techniques to "screen" stocks according
to their preferred parameters. "Technical
analysts" observe the historical patterns of stock price movements
and select stocks exclusively on this basis. |