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Avoid unbalanced benchmarks

As an active manager we make a difference with a consistent investment strategy and thorough research. After all, we are not bound by the composition of a benchmark index and they can sometimes be very unbalanced. For example, in the Dow Jones Industrial Average, the company 'Boeing' weighs nearly 10%. Through active management we can diversify better and smarter. It gives us more freedom to pursue alpha without the restrictions of adhering to the parameters of style and market-cap categories and their associated benchmarks.

Reaping the benefits of growth companies

 

Promising companies only end up in a large benchmark index when they reach a large market capitalization (and in many cases have already done well). With active management you can step into such growth stories in an early stage of their growth trajectory.

Respond smart and fast

 

Active management offers more possibilities. It allows you to respond to certain opportunities. This way you can get in the market when e.g. a sharp correction of a specific stock occurs. Specific stocks, bonds or other securities can also then be avoided consciously. Modern communication technology has not yet reached the stock markets. Those who invest actively and do their homework therefore have a competitive edge over passive investment strategies (who currently take more than half of the stock trading).

Combining top-down with bottom-up approach

 

Investors using passive index strategies will rely mostly on top-down analysis to gain access to regions or countries with favorable macroeconomic conditions. At Econopolis, however, we have the investment and research capabilities to uncover industry and security-specific opportunities (bottom-up approach). As such, our investment process combines the best of both worlds.

Good investing is something that should be unconstrained. You have to be open to do the right analysis.

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