Performance dispersion is an ongoing investment phenomenon where all markets and sectors exhibit a wide range of performance results that still exists today despite the overall weakness of the markets. Whatever investment approach or selection strategy you use, taking advantage of performance dispersion can support your alpha generation and risk management efforts.
This investment phenomenon has been widely reported through major research and analysis including a white paper put out by Morgan Stanley Investment Management, Dispersion and Alpha Conversion (April 14, 2020).
Performance dispersion is such an important opportunity for active managers that we put together a website to share research articles and give you access to free, up-to-date statistics to measure and analyze the dispersion in the markets and sectors of your interest. It provides data that can help advisors and asset managers employing any investment style or stock universe focus to exploit dispersion by discriminating between best and worst performers.
This data offers a new, different set of analytics and tools to measure performance dispersion and rate price trends, filtering out market noise, arguable opinions and disputable research. The analytics works because it is agnostic, opportunistic, pragmatic and unbiased as it is based on a multi-factor AI pattern recognition model that avoids any human interpretation and forecast. This fresh, innovative data and technology delivers a layer of logical market intelligence whose value is fully transparent and measurable and that fills a critical gap of needed information for active managers in any investment universe.
Access the performance dispersion research website here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rocco Pellegrinelli
Rocco Pellegrinelli began his career as a portfolio manager. He has been a successful entrepreneur in the technology sector for the past 20 years. He created Brainpower in 1996 and as Chairman and CEO, established it as one of the top portfolio management systems globally. After taking the company public on the Frankfurt Stock Exchange in 2000, Brainpower was acquired by Bloomberg in 2006. His conviction is “Many analytical tools makes sense, but do they also make money? It is time to bring real value to fund managers.” Rocco believes that the asset and wealth management industries need to evolve toward higher standards of value to clients, in an efficient and cost effective manner. Adopting new data and sophisticated tools is now a necessity. He launched Trendrating with the mission to provide innovative analytics and technology that deliver alpha, which are measurable, actionable, and repeatable.
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