Tactical Investment Style Funds

The predominant strategies within the tactical investment style are Global macro and commodity trading advisors (CTA).

The global macro strategy makes leveraged, directional, opportunistic investments in global currency, equity, bond and commodity markets on a discretionary basis. Managers usually rely on a top-down approach and base trading views on fundamental economic, political and market factors. They seek high returns with less concern over risk. Success is heavily dependent upon manager skill.

Discretionary traders base decisions on fundamental and technical analysis, and their experience. Systematic traders believe future price movements can be anticipated by quantitative analysis of historical price movements.

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See also:
  • Determinants of Funds of Hedge Funds Performance
  • Tactical Asset Allocation in Portfolio Management
  • What is the Difference Between a Hedge Fund and a Mutual Fund?
  • What is the Difference Between a Fund of Funds and a Multi-Strategy Fund?
  • Equity Investment Styles
  • Technical Analysis Explained : The Successful Investor's Guide to Spotting Investment Trends and Turning Points

    The Intelligent Investor: The Classic Text on Value Investing

    Financial Statement Analysis: A Practitioner's Guide, 3rd Edition

    Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)

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