How will new stock selection strategies be integrated into the SSR portfolio?
We are constantly monitoring the performance and interaction of numerous stock selection strategies. It is our policy to replace an existing SSR strategy with a new strategy when warranted by its risk-reward relationship with the overall SSR portfolio. When introducing a new strategy, it is gradually shifted into the SSR portfolio through the usual monthly portfolio additions. There will continue to be four groups and the old strategy would be replaced with a new strategy with similar characteristics, but a better risk-reward profile. Stocks from the previous strategy are identified, but they should be held until deletion from the portfolio. We are trying to take a longer-term perspective and avoid excessive turnover, transaction costs and taxes.
