Glossary entry (derived from question below)
English term or phrase:
portfolio's overweight/ underweight position
English answer:
More percentage of shares and less percentage of shares
Added to glossary by
acetran
Mar 13, 2014 11:23
10 yrs ago
14 viewers *
English term
United Arab Emirates
Translation services company in Dubai
Native in: Arabic
Works in: English to Arabic, Arabic to English, Arabic
portfolio's overweight/ underweight position
English
Bus/Financial
Finance (general)
Performance
Based on transaction pricing on the first business day of the month, the fund's return was -1.23%. Based on NAV it returned -1.38%. The fund outperformed mainly as a result of better stock selection. Stock selection in the industrials and energy sectors were the largest contributors to the portfolio's outperformance during the month. Overweight positions in two French-based industrial companies aided relative performance. The portfolio's underweight position in the larger integrated oil companies also aided relative performance, as these companies reported disappointing earnings and/or lowered guidance. The portfolio's overweight position in a US-based medical distributor was the largest single stock contributor to relative performance. The company's shares rose after it announced it will acquire a German drug manufacturer. Stock selection in financials was the largest detractor from relative performance, as improving sentiment led to strong performance in underweight European banks.
=======================
What do overweight and underweight mean here?
Based on transaction pricing on the first business day of the month, the fund's return was -1.23%. Based on NAV it returned -1.38%. The fund outperformed mainly as a result of better stock selection. Stock selection in the industrials and energy sectors were the largest contributors to the portfolio's outperformance during the month. Overweight positions in two French-based industrial companies aided relative performance. The portfolio's underweight position in the larger integrated oil companies also aided relative performance, as these companies reported disappointing earnings and/or lowered guidance. The portfolio's overweight position in a US-based medical distributor was the largest single stock contributor to relative performance. The company's shares rose after it announced it will acquire a German drug manufacturer. Stock selection in financials was the largest detractor from relative performance, as improving sentiment led to strong performance in underweight European banks.
=======================
What do overweight and underweight mean here?
References
| Check this out |
Thiago Araujo
|
Change log
Mar 18, 2014 05:53: acetran Created KOG entry
Responses
22 mins
Selected
More percentage of shares and less percentage of shares
For example, if the funds has 10% of its stocks in Retail, 25% in Manufacturing, 50% in Hi-Tech, and 15% in Defense, then we say that Retail is "underweight", meaning a smaller percentage of the stocks are in retail.
Similarly, Hi-Tech is overweight (in this example).
Similarly, Hi-Tech is overweight (in this example).
4 KudoZ points awarded for this answer.
Reference comments
20 mins
Thiago Araujo
Brazil
Brazil
Works in field
Brazil
game loc | tourism | hotels
Native in: Portuguese (Variant: Brazilian)
Works in: English to Portuguese, French to Portuguese, Spanish to Portuguese, and 1 more.
Reference:
Check this out
"A situation where a portfolio holds an excess amount of a particular security when compared to the security's weight in the underlying benchmark portfolio".
Something went wrong...