Sector rotation

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Sector rotation

An active asset management strategy certain sectors, that tactically overweights and underweights depending on expected performance. Sometimes called rotation.

Sector Rotation

An investment strategy in which a portfolio overweights or underweights certain sectors in accordance with expected performance. Sector rotation is a form of active investment management; the portfolio manager observes market trends and alters the composition of the portfolio in order to earn the highest possible return. Sector rotation is fairly high risk, as a portfolio's systematic overweighting and underweighting means that is not efficiently diversified. See also: Markowitz portfolio theory.

sector rotation

An investment strategy involving the movement of investments from one industry sector to another in an attempt to beat the market. For example, an investor might rotate investments among consumer durables, technology, and energy securities as economic fundamentals and valuations in each of these sectors change. Also called group rotation.

Sector rotation.

Sector rotation refers to the shifting of investments among different sectors of the economy.

At any given time, certain sectors will be performing better than others. Investment managers use sector rotation strategies to capitalize on the current economic cycle and maximize profits.

References in periodicals archive ?
Global strategists at Citi recommended investing in basic materials shares with an emerging market exposure, highlighting lower capital expenditure and improved cash flow generation.
These four basic materials have been produced in knowledge-based companies of Tehran University of Medical Sciences and sold to the Iranian pharmaceutical companies in a bid to enter the pharmaceutical market after undergoing scientific-legal processes," Public Relations Manager of the Pharmacology College of the Tehran University of Medical Sciences Mansour Rastegarpanah told FNA on Sunday.
The three companies are weighing on the basic materials sector, even though they all received favorable treatment from analysts today.
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However, for those whose RIM library already includes basic material and whose records management issues and budget warrant the inclusion of more advanced and subject-specific material, this set will prove to be a valuable addition.
My school, Northfield Mount Hermon, is donating textbooks and other basic materials.
Inventive in its exploitation of basic materials, this sensuous timber tunnel exemplifies Ban's lyrical yet rigorous sensibility.
The ELF 3200 Series of tabletop, multi-axis loading systems perform basic materials tests, including axial, axial/torsion, fretting, biaxial and planar biaxial fatigue tests.
The court held that although inmates have a right to meaningful access to courts, this access is satisfied by providing basic materials, such a pens and paper, for the preparation of legal materials.
RYLAND TO WEB CAST ITS PRESENTATION AT THE 2012 DEUTSCHE BANK GLOBAL INDUSTRIALS AND BASIC MATERIALS CONFERENCE AT 10:20 AM EST
11, 2015 /PRNewswire/ -- FMC Corporation (NYSE: FMC) today announced that Paul Graves, executive vice president and chief financial officer, will speak at the Credit Suisse Basic Materials Conference in New York City, on Wednesday, September 16, 2015, at 1:20 p.
Yet the FTSE's exposure to basic materials stocks, which account for nearly 10 percent of the index's weight, mean it could underperform if metal prices continue to fall.

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