Browse CFA Level 1

Chapter 12: Equity Strategies for Portfolios

In this section

  • Active, Passive, and Factor-Based Equity Investments
    Explore the fundamentals, trade-offs, and practical considerations of Active, Passive, and Factor-Based Equity Investing for portfolio managers seeking optimal risk-adjusted returns.
  • Fundamental and Quantitative Approaches
    A detailed look into the core methodologies driving equity selection through fundamental research and quantitative models, highlighting step-by-step processes, portfolio construction, and best practices.
  • Sector and Style Allocations
    Understand how equity market sector classifications and investment styles (value, growth, blend) shape portfolio construction, macro sensitivity, and performance outcomes.
  • Portfolio Construction with Enhanced Indexing
    Explore enhanced indexing, a strategic approach for generating moderate alpha over a benchmark with minimal tracking error, using active overlays, factor tilts, and partial replication.
  • Risk Management in Equity-Focused Portfolios
    Understand essential risk measures, scenario analyses, and mitigation strategies for managing equity portfolios in alignment with investment objectives and risk appetites.
  • Long-Short Equity and Market-Neutral Strategies
    Discover how long-short equity and market-neutral approaches enhance portfolio returns by exploiting opportunities on both sides of the market while controlling beta exposure.
  • Screening and Investment Style Definitions
    Exploring how equity screening criteria intersect with investment style definitions, including value, growth, and GARP, and the role of data integrity, qualitative due diligence, and rebalancing in modern portfolio management.
  • Corporate Governance Monitoring in Equity Investments
    Explore the essential role of corporate governance in equity investments, examining its impact on performance, risk, and investor engagement through board oversight, executive compensation, and activism strategies.
  • Smart Beta Concepts in Equity Allocation
    An in-depth exploration of rules-based equity strategies that diverge from market-cap weighting, focusing on factor tilts, portfolio construction, and real-world implementations.
  • Multi-Alpha Equity Strategies
    Explore the concept of combining multiple sources of active returns—like factor tilts, fundamental stock picking, and tactical bets—into a cohesive equity portfolio strategy. Dive into capital allocation methods, uncorrelated alpha engines, performance attribution, and the core-satellite approach to enhance diversification and performance.
  • Rotation Strategies Across Sectors and Styles
    Explore how to tactically shift equity allocations across sectors and investment styles, using economic indicators, regime switching models, and best practices for disciplined rotation strategies.
  • The Role of High-Frequency Trading
    Explore how high-frequency trading influences equity portfolios, market microstructure, and liquidity, covering technologies, controversies, and best practices.
  • ESG Data Integration in Equity Analysis
    Examine how environmental, social, and governance data augments equity analysis, exploring data providers, ESG controversies, thematic investing, and methods for integrating ESG metrics into valuation.
  • Approaches to Minimizing Tracking Error
    Learn how to minimize tracking error using replication, stratified sampling, and optimization methods for more consistent equity portfolio performance.
  • Hedging Equity Portfolios with Derivatives
    A detailed exploration of how options, futures, and swaps can be used to hedge equity portfolio risk, including examples of protective puts, covered calls, and index futures for beta adjustments.
  • Evaluating Equity Portfolio Performance Attributions
    Explore how to dissect an equity portfolio’s returns using the Brinson model, factor-based approaches, and standardized measurement methods for effective performance evaluation.
Thursday, April 10, 2025 Monday, January 1, 1

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