Hi folks,
Not sure if this is the right forum or not. I'm managing a fund that is growing quite well at the moment. It contains mainly equities, a few FX positions and options. A person who wanted to add funds asked me to put together a diversified portfolio plan. After some research, I thought I would ask those with some experience with this aspect the following:
1. I use IBD and the Industry Group service to determine the groups and their current ranking. There are 197 groups and they shift slightly from week to week as far as their rank on the list. Out of the various groups/sectors, how many categories would you use to diversify? Are the 10 largest cap groups considered enough diversification? Is there another number that would make sense as far as managing the positions and allotments?
2. How often would you revise your holdings and the groups in which those holdings belong? Do you check on group performance every month or Quarter and adjust accordingly?
3. Are there some core groups that you believe have to be a part of the portfolio? For example, does it make sense to find some high quality utilities and include them regardless of where the sector sands relative to the others in performance or setups? If so, which groups/sectors would you include?
I have done well managing the fund (which also has my money in it), but I'm starting to run into questions that are new to me and require consideration.
I appreciate any input.
FT71
Not sure if this is the right forum or not. I'm managing a fund that is growing quite well at the moment. It contains mainly equities, a few FX positions and options. A person who wanted to add funds asked me to put together a diversified portfolio plan. After some research, I thought I would ask those with some experience with this aspect the following:
1. I use IBD and the Industry Group service to determine the groups and their current ranking. There are 197 groups and they shift slightly from week to week as far as their rank on the list. Out of the various groups/sectors, how many categories would you use to diversify? Are the 10 largest cap groups considered enough diversification? Is there another number that would make sense as far as managing the positions and allotments?
2. How often would you revise your holdings and the groups in which those holdings belong? Do you check on group performance every month or Quarter and adjust accordingly?
3. Are there some core groups that you believe have to be a part of the portfolio? For example, does it make sense to find some high quality utilities and include them regardless of where the sector sands relative to the others in performance or setups? If so, which groups/sectors would you include?
I have done well managing the fund (which also has my money in it), but I'm starting to run into questions that are new to me and require consideration.
I appreciate any input.
FT71