Equity PMG - page 306 BB2 - segmentation

So when do you decide if segmentation should be geo vs size vs eco?

If a regional market is benchmarked against a global index it is not a geo segmentation. I was not this wise though.

My understanding is that geographical classification applies when your picks are based on a specific geographic criteria (e.g. Frontier markets, and then you apply a certain style (e.g. bottom-up discretionary) to that geographic sector. I struggle with this because I feel like there’s no clear-cut answer to classification. There’s a book example on a PM picking China and Tech, and I think the answer is a size/style classification because the geography is already picked (china) and the economic activity is also set (tech sector). So now you can pick a momentum or value style on certain company sizes (hence size and style). Idk…

The way I think of it is if you have a global industry - you could segment into geographic regions given that each region has a different growth patterns and different stages in the economic cycle.

i could also argue for size - could be that small companies have similar performance across the globe.

Just wondering… seems not clear cut

I’m not sure it works like that. “Global” implies you’re not constrained by geography. You could pick stocks from pretty much anywhere, so it doesn’t identify your fund category.

Are you studying for L3 right away?