Portfolio protection becomes less "important" and that performance drag
caused by diversifiers in an up market becomes a source of frustration and impatience for clients.
With return on equity (ROE) being a key performance factor, too much "E" in the ROE equation (E is the denominator) creates a performance drag
in the calculation.
For example, while proxying is critical for some applications, they are an unacceptable performance drag
It became more and more difficult for the staffs to work together as the under-the-surface power struggle exacted a huge emotional and performance drag
. Soon, profits stagnated while staff defections accelerated.
The primary and secondary write I/Os are completely independent of each other, eliminating the possibility of a performance drag
on the application.
At Princeton I was dressed in casual butch blue jeans, rather than my usual ultra-femme, high-maquillage, Auntie Mame performance drag
, to signal that I was not the central focus: Cindy Crawford was.
Although stocks have had a rocky start so far in 2016, prices could tick higher, creating a performance drag
for funds with large cash positions.
In order to avoid the possible performance drag
created by an unwanted cash position and to maintain the portfolio's overall objectives, proceeds from this sale may then be invested in a highly correlated ETF with similar attributes.
We maintain our Underperform rating trading at 0.7x 2010E NAV as we think operating performance drag
is likely to keep RoE<14% in 2011E.
From the client's perspective, however, the potential performance drag
from such a high cash allocation may easily exceed the management fee savings relative to competitors," the analysts explained.
By giving equal weight to, say, the 100 largest stocks in a given universe, an equally weighted portfolio avoids the performance drag
of cap-weighted's preference for popular stocks and will also capture the return advantage of smaller stocks.