Is There a Difference Between Cap Weight and Industry Concentration?

I wanted to remove some of that noise. So what I did was I chose a middle ground, so similar to what I did with 150 names,. This is something we used to do at GMO as well; it's like somewhere halfway between being equated and cap weighted. But more importantly, you're not your massive tracking error against the S&P. And that tracking error is more importantly, low-quality tracking error. It's driven by a random bet on a single factor, which is small versus large.

Transcript

Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app