Jason's Hierarchy of Entertainment S03:E07
Pirates of Finance
00:00
Rebalance Timing Work
Turnover of the strategy. If you're trying to maintain a 50-50 mix, there is effectively no rebalance timing work. A low turnover value strategy maybe has a little less risk than a high turnover momentum strategy. And then comes the frequency of rebalancing, right? If you're rebalancing daily, you and I don't have an opportunity to be different. We're both rebalancing every day. Well, we could choose six months apart from each other and that could be a big difference. So the three factors, right, frequency, internal turnover and then the potential dispersion within the universe all play an equally important role.
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