The Quest for Low Beta*

beta symbolAt the risk of using too much industry jargon, Beta (symbol B) is defined as a measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Professional portfolio managers are continuously on the quest for low beta investments that, when added to the manager’s portfolio, will allow the manager to maintain a decent return while at the same time lowering their overall exposure to the ups and downs of the market.

*This information applies to the firm’s actively managed portfolios only.

We offer no guarantee that applying our strategies will in fact achieve lower beta performance or provide any particular return, positive or negative. Past performance is no indicator of future return. There is no guarantee that applying a momentum strategy will either increase your portfolio’s return or lower its volatility as compared to any other strategy. Some securities and market environments are particularly unsuitable for trading using a momentum strategy. An active investing strategy will likely incur higher commissions than a buy and hold strategy and may or may not increase your taxes relative to buying and holding.</span