RT Journal Article
SR Electronic
T1 Investing in Global Equities: <em>An Alternative Approach to Structuring Equity Portfolios</em>
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 50
OP 60
DO 10.3905/JPM.2009.35.2.050
VO 35
IS 2
A1 Wenling Lin
A1 Phil Hoffman
A1 Ann Duncan
YR 2009
UL https://pm-research.com/content/35/2/50.abstract
AB Hiring the right manager is crucial in capturing the alpha potential of a fully global approach to equity investing. Since 1999, global equity managers, as a whole, have outperformed a combination of U.S. and non-U.S. managers, although evidence of out performance is weaker over the longer term. Only 21% of these global managers have actually added value through their allocations to U.S. and non-U.S. stocks. Managers taking larger active country, sector, and stock bets outperform those who take smaller bets. The greater excess-return potential of global equity managers is due to the broader investment opportunities and additional sources of alpha associated with stock and sector selection across a universe that encompasses both U.S. and non-U.S. stocks.TOPICS: Global, equity portfolio management, portfolio construction