Investment style

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Investment Philosophy

Basic standards and beliefs guiding one's investing practices. Factors influencing one's investment philosophy include risk tolerance, investment goals, and personal beliefs about what guides markets. Investment philosophies may vary widely from each other. For example, when investing in securities, one investor may use technical analysis, which utilizes statistical information exclusively, while another may use fundamental analysis, which uses both quantitative and qualitative information. It is also called an investment strategy. See also: Naive diversification, Markowitz Portfolio Theory.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Investment style.

Investment style refers to the approach that investors, including professional money managers, take in selecting individual investments and assembling portfolios as they seek to achieve their investment goals.

For example, a mutual fund that is focused on small-cap stocks might seek long-term capital appreciation by choosing aggressive growth stocks. Another small-cap fund with the same objective might build a portfolio of underpriced value stocks.

Evaluating a fund's investment style -- which is typically described as aggressive, moderate, conservative, or contrarian -- is an important consideration in choosing among mutual funds and ETFs. You'll want to be sure that any fund you purchase is compatible with your individual risk tolerance.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Imperial Capital analyst David Miller says the pullback yesterday in shares of MSG Networks reflects an "emotional reaction" and that the stock at current levels is a "classic small-cap value trade." The reason for the selling pressure was due to the injury suffered by Golden State Warriors superstar forward Kevin Durant during Game 5 of the NBA Finals, Miller tells investors in a research note.
Small-cap value stocks, REITs, and emerging market stocks earned returns in line or above their historic norms.
Driehaus Capital Management has announces the acquisition of the small-cap value management team of Cincinnati-based Opus Capital Management, the company said.
US small-cap value stocks were breaking records for relative underperformance, lagging large-cap growth stocks by almost 20 percentage points.
If I want to choose a fund that will likely outperform its benchmark, I'll find one that leans to the small-cap value (bottom left) corner of the large-cap value box.
Over the 10-years ended June 30, 2016, highest cost mid-cap blend and small-cap value funds outperformed their lowest cost counterparts.
30 June 2015 - US-based investment management holding company Emerald Asset Management, Inc.'s Emerald Mutual Fund Advisers Trust subsidiary has completed the acquisition of the former Elessar Small-Cap Value Fund into the new Emerald Small-Cap Value Fund, the company said.
"There's a tremendous difference between the performance of small-cap value stocks and small-cap growth," McDermott observes.
Now the industry appears to be coming full circle, with the realization that what employees and participants need to know is how important it is to save in their retirement plans-not what the difference is between a large-cap growth and small-cap value fund.
A manager of Integrity's Munder Veracity Small-Cap Value A fund (VSCVX), Gilbert says, "Stocks offer a better risk/reward vis-a-vis bonds--in particular, the small- and mid-cap stocks that are more exposed to domestic growth." He offers BLACK ENTERPRISE three of his top company picks.
However, Creatura believes that this jittery environment makes a compelling case for investing in small-cap value stocks – particularly for risk-conscious investors seeking upside potential.