The identify refers to a technique and agency specializing in relative power evaluation throughout the funding administration business. This method focuses on figuring out securities, sectors, or asset lessons which can be outperforming their friends. As an alternative of relying solely on elementary or macroeconomic components, it analyzes worth momentum to find out funding allocations. A typical software includes rating totally different shares primarily based on their worth efficiency relative to a broad market index or sector benchmark.
This method provides a number of potential benefits. It’s a systematic, rules-based funding type that seeks to capitalize on traits. It helps buyers keep away from emotionally pushed selections by counting on goal, quantifiable information. The historic context reveals its origins in technical evaluation, evolving into a definite, refined technique for portfolio administration. Its profit lies in probably figuring out alternatives which may be missed by conventional elementary evaluation.
