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Asset Allocation

Two competing approaches are used in practice to build portfolios: bottom-up and topdown. The bottom-up approach is the older and the more traditional, and focuses on individual stock picking. The top-down approach gives more importance to the choice of different markets as opposed to individual security selection, and, as such emphasizes the impor...
Author(s)
Noël Amenc, Lionel Martellini

Two competing approaches are used in practice to build portfolios: bottom-up and topdown. The bottom-up approach is the older and the more traditional, and focuses on individual stock picking. The top-down approach gives more importance to the choice of different markets as opposed to individual security selection, and, as such emphasizes the importance of asset allocation.

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