Equity Portfolio construction - size factor

CFA Level III Equities
#1

The book confuses me on the Size factor. Seems like an error.

In Example 7 on page 498, the dude has a negative size factor (coefficient) in the first five years, -0.30, and in the last five years this has changed to positive, +0.10. In the answer the book says, However the portfolio no longer has a small-cap tilt… Implying the -0.30 meant he had a small cap tilt.

Then in Exh 21 om p500, Product A has a Size factor of -0.29, and on the next page, Product A is said to have this characteristic; A large cap bias (a negative coeff on the Size factor).

The latter is of course correct (SMB).

Is the former wrong, or am i mistaken / misunderstandig?

#2

I was also really confused by this, any answer appreciated!

#3

The errata reads:

“In Example 7 (page 498 of print), “Size coefficient” row of the table, the “First Five Years” column should be 0.30, and the “Last Five Years” column should be –0.10.”

They had swapped the numbers.

https://www.cfainstitute.org/-/media/documents/support/programs/cfa/cfa-level-iii-errata.ashx

#4

Thanks