I've been hearing about investment style drift and I'm not quite sure what it means. Could someone explain what investment style drift is and how it can affect my investment portfolio?
5 answers
CryptoTitanGuard
Tue Oct 29 2024
This divergence can happen naturally due to the appreciation of one asset within a portfolio compared to others.
Martino
Tue Oct 29 2024
When one asset grows significantly in value, it can alter the overall composition of the fund, leading to a shift in style.
CryptoEmpire
Tue Oct 29 2024
Additionally, style drift can occur due to changes in fund management. If a new manager takes over, they may have different investment strategies and objectives.
Caterina
Tue Oct 29 2024
This can result in the fund diverging from its original mandate and adopting a new investment style.
Bianca
Tue Oct 29 2024
Style drift represents the phenomenon where a fund strays from its original investment style or objective.