Style Investing

Headed by Bernstein, the quantitative equity and equity derivatives strategies group at Merrill Lynch is noted for their proprietary research on market segmentation and style investing. In this book, he highlights the macroeconomic, microeconomic and expectational factors that can affect equity market segment performance. The first section focuses on the definition and identification of market segments and reviews the major equity market segments that concern today's institutional investors. Part two analyzes the historical result of each segment of style strategy within the context of the economic and expectational framework. Lastly, it describes current issues and problems in equity markets and their implications for pension plan sponsors.

Understanding and Defining Market Segmentation. The Economics of Nominal Earnings Growth and Investor RiskPerception. The Importance of Expectations. Growth vs. Value. High Quality vs. Low Quality. High Beta vs. Low Beta. Dividend Yield and Equity Duration. Large vs. Small Stocks. Implications for Plan Sponsors. Equity Derivatives and Style Investing. Implications for Disciplined and Long-Term Investor. Index.