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.
An undesirable investor is more likely to be attracted to index funds, exchange-traded funds (ETFs), or dated funds than to individual stocks or other securities.
A look at the historical performance of the S&P 500 shows that passively managed funds tend to outperform their actively managed counterparts over time.
However, even a passively managed portfolio needs to be periodically adjusted as the beneficiary reaches certain milestones such as retirement.
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.
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.