Contents
Always In Style..................................................................................................................3
Overview: What Works Won’t Last ................................................................................3
The Style Diversification Framework.................................................................................4
Coping with Style Shifts ....................................................................................................5
Our Solution: Combine Strategies to Diversify Risk...........................................................6
How Strategies Change.....................................................................................................8
Applying the Framework....................................................................................................9
Growth, Value, and Core Stock Selection .........................................................................9
Sector Investing ...............................................................................................................11
Bibliography ....................................................................................................................14
Exhibits
1. The Strategies We Use for Stock Selection ...................................................................4
2. Growth/Value Cycles Last Roughly Ten Years...............................................................5
3. The Market Throws Strategies In and Out of Favor .......................................................6
4. How We Score Individual Stocks: Ashland Inc. as of January 1, 2002............................7
5. How Strategies Change Over Time: Strategy Weights for Russell 1000 — February 1,
2002 vs. October 1, 1999 ......8
6. Changes in Top-Ranked Russell 1000 Stocks — February 1, 2002 vs. October 1, 1999..9
7. Long-Only Portfolio Simulation for Russell 1000..............................................................9
8. Long-Only Portfolio Simulation for Value Stocks ...........................................................10
9. Long-Only Portfolio Simulation for Growth Stocks..........................................................10
10. How Strategies Vary Across Styles ..............................................................................11
11. Top Ten Stocks for Growth and Value — February 2002.............................................11
12. How Strategies Vary Across Sectors: Financials and Technology ...............................12
13. Long-Only Portfolio Simulation for Technology Stocks.................................................12
14. Long-Short Portfolio Simulation for Technology Stocks ...............................................13
15. Strategy Weights for Technology Stocks — February 2002 ........................................13
16. Most Attractive Technology Stocks — February 2002 .................................................13 |
