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Overweight Stocks

An Overweight position is when an investor’s Stock Portfolio, holds a greater percentage of a Stock compared to the weighting of the Stock in the Benchmark Index.

A Benchmark Index could be used by investors to monitor their holdings and performance. It applies a disciple to the Investment Strategy. If doing so, an investor could apply different weightings to different Sectors or Stocks. An Overweight position in a Stock or Sector is where an investor does not match the weighting in the Benchmark Index, instead applying a greater weighting to the portfolio. If the reference Benchmark Index weighted a certain Sector at 15% of the total Index, then an Overweight position would be more than a 15% holding in the portfolio for that Sector. When a Stock or Sector’s valuation dynamics are considered to be favourable, an investor could Overweight this in their portfolio, compared to the weighting in the Benchmark Index.

Asset Management
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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: wwBLOG@smartest-data.blog or Telegram +393339034488

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