iti't'ir'i;ul t F5 uii tn rt t q t 7 ii;cfw_t d to t= a recent lettel to clients"/>
HdOut-CoreSatelliteApproach

HdOut-CoreSatelliteApproach - (z C ui.o"|.r-t.icfw;1c r J...

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(z*\ C ui, .o /"|.r-t'.i{;1c r:) J la tS.>iti't'ir.'i;ul t F5 uii- tn d: rt t+ ! q / t 7 ii;{t), to - t=) letter states, ion has been bandied about b-r' trany other malket piog- nosticatois in lecent yeals, on15r to fall short. a recent lettel to clients, Evensiqr, chainnan of E.r'en- that ihe firm has added tlu-ee letv ^s:rtellite recornmenda-
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Exhibit 12 Potential advantages of core-satellite approach Core portfolio (indexed investments) Low costs vs. active management Lo\n'e!- risk budget vs. active management Diversification (broad indices) Glose tracking of benclrmark performance \ Satellite portfolio (active investments) Take "bets" to enhance returns (add alpha) Higher costs vs. indexed management Decorrelation Require strong selection skills Can use illiquid assets Satellite 3 13
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This note was uploaded on 09/08/2010 for the course BUS 172B at San Jose State.

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HdOut-CoreSatelliteApproach - (z C ui.o"|.r-t.icfw;1c r J...

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