An Opportunity of equity portfolio management implement strategies for stocks. “Stock picking” keeps focus on the characteristics of the particular stock as a financial security & the financial as well as business of organisation. They believe in value of the stock and analyze the prospects for the issuer independent of market and economic changes. This way we will make industry and security “CALL” in portfolio weightings, moving into defensive stocks & cash in overvalued markets,at the same time weighting stocks as well as industries that are relatively attractive and cheaper in value terms.
Fundamental equity value analysis relies on futuristic financial data and an assessment of the business prospects. The historical data demonstrates the “track record” of the company and its management. The assessment of the business prospects of an issuer involves a study of the conditions and environment under which a company operates.
Active management of Equity management is very much necessary to make sure risk will be lower always and rewards will be ahead than curve. in other words more alpha & low beta.
A basic assessment of a company’s business prospects includes a review of all public information available on a company and third party research reports.
To encompass a more “in-depth” review, equity portfolio management strategies would include interviews with senior management of the company, both telephone and in person, and even discussions of the company’s prospects with suppliers, regulators (where applicable) and even competitors’ personnel.