portfolio systemically different than benchmark?

CFA Level III
#1

hoping people can help.

i passed level 3 a few years ago, but trying to remember what the expression was for this (i believe it was in L3).

you manage a portfolio with S&P 500 benchmark, but you love energy stocks or energy stocks (hypothetical example) and always have an overweight on those segments. a signficant overweight.

so your performance year-to-year isn’t so much your own acumen but how that chronically overweight sector you love did…

i’m looking for a term for this. i believe there was one… might have had “bogey” in it, but i see that expression is often just benchmark. and i do not believe it was simply “mis-match”

p.s. i’ve seen this real life and business development. someone who didn’t buy tech stocks (like nortel) almost lost their business in late 1990’s. and then were super-heroes and inundated with money in early-mid 2000’s… all because of a perpetual disdain for tech stocks.

thx advance :slight_smile:

#2

Tilt?

#3

Tilt , GARP ( not sure of it may apply to sector in place of security), thematic investing ( with regards to energy stocks of course), Sector allocation, Sector- Security mix.

#4

(benchmark) inappropriate benchmark (normal weights of portfolio <> weights of benchmark)

(portfolio) if S&P500 is true benchmark in terms of IPS -> suboptimal portfolio, factor(sector) exposure mismatched portfolio,

#5

thanks guys… is it really just “mismatched” as the term?.. i thought it had some fancy term (that’s really what i’m looking for… but maybe it doesn’t exist).

as for tilt, it would be endless tilt, in which case you ask "is X really a good benchmark if don’t invest in big portion of it or invest outside it very heavily (and all the time)??