Snapshots of The Validity of Emphasizing Allocation and Selection in Equity Portfolio Management

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that among top-performing US large-cap core equity funds, security selection and interaction effects account for most excess returns, while lower-breadth sector allocation requires greater forecasting skill to achieve comparable performance.