Rebalancing: When and Why We Trim Winners

Written by

in

Rebalancing feels wrong because it means selling the thing that is working. But a position that has doubled is now twice the risk it was when you sized it. Once a quarter we trim anything that has drifted more than five points above its target weight and top up what has lagged. It is unglamorous and it is most of the job.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *