How Often Should You Rebalance Your Portfolio?

Описание: Few fundamental portfolio managers have a good grasp on how often they should revisit their portfolio construction with a full rebalancing analysis.

Most PMs regularly trade around their book on an asset-by-asset basis - selling a bit of one name to buy another, trading around a position, and generally managing the portfolio day-to-day. But the most impactful portfolio construction decisions are taken with a view on the whole portfolio, not just single names.

That said, it usually isn't practical (or in fact beneficial given costs) to rebalance the entire portfolio every time you make a single trade. How often then should the PM look at the positioning of the whole portfolio in a full rebalance?

Managing the rebalancing process doesn't need to be a fuzzy process. Tracking how often your views change, the risk of the assets you trade, your transaction costs and other metrics can provide a more objective framework for thinking about rebalancing.

In this webinar, we'll show how PMs can:

... measure how often their views change, versus looking at portfolio turnover from a trading or market price change perspective,
... think how the risk characteristics of the assets drives the speed with which their overall portfolio risk positioning changes,
... bring together these and other metrics to make more informed decisions about how often to rebalance or re-build their portfolio.

Learn more about Sherpa's approach to portfolio construction at www.sherpafundstech.com.

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