Returns based vs Holdings based style analysis

Big_Babbu · June 4, 2009, 9:54pm

Which picks up style drift quicker?

cdogstu77 · June 4, 2009, 9:55pm

Holdings Based

nicolargol · June 4, 2009, 9:55pm

Holdings based and for 50$ more: quote 2 pros and cons of each method

sbmfj · June 4, 2009, 9:55pm

holding?

sbmfj · June 4, 2009, 9:56pm

holding is easier, quickers yet harder to get all info, and i dont know…

cdogstu77 · June 4, 2009, 9:57pm

Holdings Based: Pros - Picks up style drift quicker, can be done at point in time Cons- need extensive data, may not reflect manager’s investment opinion Returns Based: Pros- Easily interpreted, ? Cons- Need to select the right indices or your results are misleading.

Big_Babbu · June 4, 2009, 9:59pm

Pros RBSA characterizes portfolio can compare portfolio same for holdings based except sub. securities for portfolio cons RBSA style drift causes accuracy problems Holdings based need more data than RBSA

nicolargol · June 4, 2009, 9:59pm

RBSA pros = same results with different models, compare different portfolios, executed quickly, cost effective

albatrosS333 · January 23, 2013, 6:26am

HBA detection quicker…

HBA uses multiples, dividend payout, sector to determine value or growth

5X_EBITDA · January 23, 2013, 4:10pm

Holdings-based is also more subjective. Not all managers use same metrics or break points to categorize style (e.g., at what P/E multiple do to you differentiate value from growth)?