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Bogey

An individual number that is used as a fixed-income portfolio's target performance or desired result. Most often, bogey refers to...

Risk Parity

An investment strategy that hinges on the so-called risk allocation (rather than capital allocation) whereby investors target predefined levels of...

Vega-Neutral Portfolio

A portfolio of options which has a vega of zero. That is, the option combination implies a neutralized vega. This...

Active Investor

An investor who takes an active role in the management of the company in which he has a large stake...

Portfolio Swap

A swap that references a set of single name credit default swaps. The portfolio will be customized to meet the...

Efficient Frontier

A continuum of portfolios that generate the highest expected returns for their given levels of risk (standard deviation) plotted in combinations of expected return and standard...

Alpha Core

The construction of a portfolio using active returns (alpha) as the primary driver of the construction process, instead of asset class betas. More specifically, this...

Self-Financing Portfolio

A portfolio (hedge portfolio) that is characterized by specific features such as zero investment and risk-free exposure (inflows and outflows...

Rabbit Portfolio

A portfolio whose components (investments) are transacted in expected markets (i.e., whose value is based on expected trading costs, rather...

Value-Added Return

The return which is earned by an actively managed portfolio in excess and over an average market return (benchmark). In...