The Investment Style

Sometimes you like a book to the point that you would like to read it again, Came across an  interesting extract from one of my favorite imagesbook Trader Guns and money, ..The fund managers had their own papal fashions which is called as investment styles,

Style :                     Index Fund

Meaning :           The fund manager invests to match some  index like S&P 500

Reference :          The fund manager has give up trying to beat the market.


Style :                    Active Management

Meaning :           The Fund manager picks up stock that willdo better than the market

Reference :          The triumph of hope over experience. You the investor are paying for the experiment.

 Style :                   Momentum investing: 

 Meaning :          The Fund manager chases what ever is going up

Reference :          The lemming or crowd theory of investing; the investment equivalent of a finish proverb: ‘shit must be good, millions of files can’t be wrong’.


Style:                     Value investing

Meaning:            The fund manager invests in under valued gems that he has uncovered through research.

Reference :          Pure luck or you hope that fund manager has inside information.


Style :                      Yield enhancement

Meaning:             The fund manager invests to generate above market income

Reference :          You are talking on a whole lot of risk. You will be lucky to get your money back intact.


Style:                     Portfolio insurance

Meaning:            The fund manager guarantee that your investments at least 90% of it is safe

Reference:           Hang on wasn’t the return of Principal the least that you are entitled to?


Style:                     Structured investment

Meaning:            The fund manager will specifically design to fit your exact risk and return parameters using sophisticated investment tools and financial products.

Reference:           A pure con job to charge you more fees


Style:                     Alternative investment

Meaning:            The fund manager will invest in hitherto unknown assets weather derivatives catastrophe bond art stamp etc

Reference :          You are at an investment pioneer good luck !  


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