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.
Bottom-up investors focus on a particular company and its core principles, while top-down investors focus on the industry and economy.
The bottom-up approach assumes that individual companies can succeed even in an inefficient industry.
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.
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.