Asset Allocation vs Security Selection: Their Relative Importance
$25
Author: Renato Staub, Ph.D., William Blair and Company and Brian Singer, CFA, William Blair and Company
Various researchers have investigated the importance of asset allocation versus security selection. Although we think this question is conceptually weak - because asset allocation and security selection have different missions - we address it to ensure appropriate quantitative treatment. We focus on feasibility rather than on what managers actually do. Hence, our approach is free of benchmark thinking and makes no assumptions regarding portfolio positions or potential constraints.
Asset Allocation vs Security Selection: Their Relative Importance