RT Journal Article
SR Electronic
T1 Market Vision and Investment Styles
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 77
OP 82
DO 10.3905/jai.1999.318905
VO 2
IS 3
A1 Mark S. Rzepczynski
YR 1999
UL https://pm-research.com/content/2/3/77.abstract
AB The development of a simple taxonomy for trading style based on a worldview can serve as an important differentiation across money managers and provide insight into how many managers expect to generate returns. For instance, a taxonomy for active management can divide trading behavior into two broad types: convergent and divergent. The convergent–divergent dichotomy effectively encompasses the behavior of a broad universe of money managers and can be applied across a wide variety of asset types. This trading dichotomy can describe the philosophical differences between hedge funds and managed futures funds as well as similarities across asset types.