Cryptocurrency Q&A What is investment style drift?

What is investment style drift?

EclipseSeeker EclipseSeeker Sun Oct 27 2024 | 5 answers 904
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? What is investment style drift?

5 answers

CryptoTitanGuard CryptoTitanGuard Tue Oct 29 2024
This divergence can happen naturally due to the appreciation of one asset within a portfolio compared to others.

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Martino 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.

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CryptoEmpire 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.

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Caterina Caterina Tue Oct 29 2024
This can result in the fund diverging from its original mandate and adopting a new investment style.

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Bianca Bianca Tue Oct 29 2024
Style drift represents the phenomenon where a fund strays from its original investment style or objective.

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