You Want the Size, Value, and Profitability Premiums . . . But How?

1 CE Credit | 3 Papers (53 Pages Total)

Investors should consider many questions when incorporating premiums into real-world asset allocations. In this session, we discuss allocating across premiums and regions in a portfolio and efficiently pursuing those premiums.

Learning Objectives

1. Consider ways to capture the size, value, and profitability premiums in real-world portfolios.

2. Recognize that investors should be cautious about favoring one premium over another or one region over another based on the magnitude of the expected premiums.

3. Learn about an integrated approach as a way to account for the interactions among multiple premiums and to maintain a strong tie between security weights and market prices. This can lead to more reliable outperformance, better risk control, and lower costs.

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