Active management includes making decisions to buy and sell assets in a portfolio.
Passive management is a strategy aimed at achieving index returns.
Active management seeks to generate returns in excess of those of the market as a whole to manage risk, increase returns, or achieve other investor goals such as implementing a sustainable investment approach.
Attribution analysis is an evaluation tool used to explain and analyze the performance of a portfolio (or portfolio manager), especially when compared to a certain benchmark.
Investing from the bottom up is an investment approach that focuses on the analysis of individual stocks and downplays the importance of macroeconomic and market cycles.
A laissez-faire investor is a more passive investor who prefers to allocate assets and other investment decisions and then make minor adjustments over time.
Horizon analysis compares the predicted discounted return on a security or the total return on an investment portfolio over several time periods, often referred to as the investment horizon.
The hub and beam structure in investment uses multiple portfolio managers or sub-funds, known as “spokes” or “feeders”, who invest in a “center” or “master fund”.
Investment analysis involves researching and evaluating a security or industry to predict its future performance and determine its suitability for a particular investor.