Ralph Smith - Scientific Investing in Fixed Income (S5E7)
Flirting with Models
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How Does the Design Process Change With Long Mandates?
Long short and bench mark, relative long only are pretty similar. But the constraint in the bench mark does change things a little bit. Where it differs is if you think about a long only portfolio, which is absolute return. Typically those mandates will take a much higher degree of factor risk than a security selection risk that our other mandates would take. And i should y note that the nature of our scered selection in incites tends to be a little bit defensive,. so that they combine quite nicely with some market exposure in terms of evening out draw downs.
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