Insight
More Than a Number
Active large-cap managers often increase portfolio holdings in hopes of diversifying risk that is not otherwise being properly measured and managed. Allspring’s Special Global Equity team sees a better way.
Key takeaways
- Active large-cap managers often seek to diversify risk by increasing portfolio holdings, but evidence does not support this practice.
- Allspring’s Special U.S. Large Cap Value Equity portfolio combines a unique approach to stock selection with a meticulous portfolio construction process, aiming to neutralize undesirable risks while allowing security selection to drive returns.
- Results from the past year show lower tracking error relative to peers and top-decile risk-adjusted returns, as measured by the information ratio and Sharpe ratio.