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 ?
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.
But gains have come in volatile trading in the past year, characterized by frequent sector rotations.
Sector rotation has also been intense, but that will continue into the year ahead," Moe said.
Also, they can indicate if a current strong hold can start to underperform given market and sector rotations.
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.
The large number of short recommendations came about as the result of sector rotations.
The large number of short recommendations came about as a result of recent market pressures and sector rotations.
Now, however, complete sector rotations are rare and periodic sector replacements have become the norm due to calmer markets.
Complete sector rotations such as these generally occur every couple of years.
Meridian's is a forward-looking, fluid process of assessing and grouping Value-to-Price Ratios for each security and sector - every Monday in fact, although sector rotations or replacements may occur every year or two.
Complete sector rotations are rare in Meridian portfolios, and allocations typically change only once every year or two.
Meridian's Graham-based, bottom-up sector rotation strategy has earned Meridian Tactical and Balanced accounts top Quartile and 1st Percentile rankings, respectively, from "Money Manager Review" for the five-year period ending 12/31/95 net of management fees.