Q4: Scott Sanderson – Portfolio Optimization: Risk Preferences In, Trades Out
Chat With Traders
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The Importance of a Sector-Neutral Portfolio
A professional quant shop is probably going to be putting on their portfolios a lot more than just saying we want to be neutral in each sector. You might not be allowed to trade certain stocks for legal reasons because one of your board members owns some company. There's there's more complex constraints that you you you can have to put on on portfolios sometimes. But yeah, I think one of the things I do I would want to add to that is that Uh, I wouldn't want to say that some sort of more Constricted portfolio is categorically better than others.
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