When Does Specializing in a Sector Make Sense?

If you’re like the majority of managers out there, you use a generalist approach and an opportunistic view on the sectors to participate in for any given market environment. If you’re only looking for beta by shifting your sector exposure, then the way the constituents of sector benchmark behave with regard to each other is of little importance. But if you’re looking to create Alpha in a certain sector, those dynamics become very important.

One question our clients often ask is whether or not it pays to specialize (or even participate) in certain sectors over others, or keep a generalist mix of multiple sectors. In our latest report, we take a hard look at the data to discover when it makes sense to specialize in a sector, and which sectors outperform.

What's in the report?

  • WHICH SECTORS HAVE THE MOST HEDGE FUND SPECIALISTS
  • WHICH SECTORS ARE MOST RIPE FOR OPPORTUNITY TO CAPTURE ALPHA
  • WHICH HEDGE FUNDS ADD ALPHA