EconPapers    
Economics at your fingertips  
 

SIGNIFICANCE OF THE PORTFOLIO SCOPE FOR IMPROVING THE RESULTS OF THE ACTIVE PORTFOLIO MANAGEMENT– FOLLOWING THE EXAMPLE OF THE EMERGING STOCK MARKETS IN SOUTHEAST ASIA

Plamen Patev () and Kaloyan Petkov
Additional contact information
Kaloyan Petkov: Стопанска академия "Д.А.Ценов"

Business Management, 2017, issue 4 Year 2017, 15-32

Abstract: Active portfolio management is widely used in investment practice with the goal of securing better performance results from the investment process. Active portfolio management has gathered significant attention from both academics and practioners. Our goal is to investigate the class between two competing ideas. On one hand increasing the Breadth of the portfolio we should have bigger diversification effect. On the other hand increasing the number of assets (Breadth) should lead to smaller forecasting ability and therefore lower IC . Presented results show that our first hypothesis is confirmed – increasing the number of assets in the portfolio magnifies the effect of the active management. Additionally we show that when managers increase their Breadth, they increase not only IR, but also manage to decrease IC which shows better stability of our forecasting skill through time.

Keywords: breadth; strategy risk; alpha; active portfolio management (search for similar items in EconPapers)
JEL-codes: G11 G15 C21 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10610/3401

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dat:bmngmt:y:2017:i:4:p:15-32

Access Statistics for this article

Business Management is currently edited by Krasimir Shishmanov

More articles in Business Management from D. A. Tsenov Academy of Economics, Svishtov, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Kostadin Bashev ().

 
Page updated 2020-01-04
Handle: RePEc:dat:bmngmt:y:2017:i:4:p:15-32