Sector rotation


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

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 ?
Bachman is the first to admit that sector rotation funds are somewhat more volatile than the market overall, because of the nature of sector investing, Many investors use it as the third leg of an investment stool that includes growth and value components, having it account for no more than 20% to 30% of equity portfolios.
We are excited to continue our work together, launching this unique sector rotation strategy product that seeks to dynamically adjust monthly to sector trends, as well as prevailing market conditions.
Innealta Country Rotation Fund & Innealta Sector Rotation Fund seek to generate capital appreciation and current income by investing in representative equity-only ETFs.
The team employs active sector rotation and disciplined risk management to portfolio construction, avoiding interest rate bets and remaining duration neutral to each strategy's stated benchmark, and will utilize option overlay strategies to attempt to generate additional income for the fund.
Jerry Thunelius' top-down sector rotation approach coupled with a bottom-up analysis has proven very successful for his fixed income clients.
We believe Expanded Distribution Reflects Investor Interest in Actively Managed Country and Sector Rotation ETFs Focused on Managing Risk and Preserving Wealth
Typically placement will include, but is not limited to, the following locations: Acute NHS Trusts, Psychiatric Trusts, Community trusts, hospices, private sector rotations and GP Training Practices.
Combining Cirrus's multi-faceted valuation/analytic techniques and rigorous quantitative tools forecasting industry and sector rotations within financial markets alongside Hanley & Associates's face-to-face meetings with company management is more efficient for institutional investors as they conduct their investment research due diligence," said Satya Pradhuman, founder and Director of Research at Cirrus.