Also, ensuring that our clients'portfolios were themselves diversified meant we could monitor the position sizes
and take some measured risk.
These include increasing cash balances to meet outflows and reducing position sizes
to increase their ability to liquidate positions if they face a combination of redemptions and market stress.
The other way, he notes, it is to reduce the manager's position sizes
so they reduce their exposure to idiosyncratic risk, or the risk of any specific sector of any specific company.
The values of position sizes
for an analogue PID is:
The portfolio holder would normally disclose various characteristics of the portfolio, such as the portfolio's total value; number of securities which it contains; distribution of the securities by market and by sector or index; type (in the U.K., alpha, beta, or gamma shares); industry group and concentrations; average position size
; distribution of position sizes
; average trading volumes; and capitalization weightings.