Chen prefers an approach that emphasizes security-specific factors, does not engage in factor timing, and builds a diversified portfolio.
Answer: These characteristics all reflect a discretionary bottom-up portfolio management approach
My question is why it is discretionary bottom-up rather than Systematic bottom-up? I will say it is Systematic bottom-up because it does not engage in factor timing and positions are diversified. While discretionary bottom-up has potential factor timing and either diversified or concentrated position.
Can someone help? Tq