Tactical asset allocation involves taking a proactive stance on the strategic asset allocation itself and adjusting long-term target weights for the short term to capitalize on market or economic opportunities.
Tactical changes may also apply to the asset class.
In a discretionary TAA, the investor adjusts the asset allocation according to market estimates of changes in the same market as the investment.
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.