COMPLETION FUNDS

how to establish them???

Due you mean completion portfolios ? If thats the case, a completion portfolio is a way of offsetting a concentrated position in a low basis stock by using other liquid assets to purchase a basket of securities which when combined with original portfolio reduces overall risk.

you can also use tax loss harvesting and dividends on the low basis stock to further diversify. What is the difference between private and public exchange?

isn’t there a completeness fund…anybody shed some light on this please?

there is completeness fund, it aimed at brining your active portfolio inline with benchmark systematic risk exposure. It might eliminate misfit risk due to style (non-zeno risk might be optimal) (if i remember this correctly)

A complteness fund is basically when a manager of funds has a bunch of funds with hgher than desred active managers. To bring bring the overall portfolio back inline with the desired risk exposure to certain sectors/styles of the investor’s benchmark, they would establish a completness fund. The benfit is that the investor’s portfolio now is closer aligned to risk exposurers of the bencmark while retaining the stockk-selection ability of active managers. The drawback is misfit rirsk is elimanted. Why misfit risk beinng elimimated is a negative is the only part that confuses me.

>The drawback is misfit rirsk is elimanted. Why misfit risk beinng elimimated is a negative is the only part that confuses me. B/c it might result in reduction of active returns