Asset Allocation in Practice



Edge Capital Research Team


Download PDF


Articulating the process we employ to set asset allocation is a difficult task. Many investors would like to believe that asset allocation, manager selection, position sizing, and tactical weighting is a scientific process which, when provided specific quantitative data, is only a matter of “running the model”. We are of the faith, however, that the decisions inherent in portfolio management employ both science and art. Therefore, it requires a process which employs quantitative and qualitative information, formal financial theory and intuition, decision-rules and judgment.