Was reading about Winton’s new long equity fund in Institutional Investor Mag this AM over breakfast – Strength in Numbers:
“Most of the weightings will come from risk, and the most straightforward measure of risk is volatility,” says Precious, who joined Winton in 2006 from UBS, where he was co-head of global equity strategy. “We will give low weightings to high-volatility stocks, with the aim of having less concentration of risk than you would have in any market-cap-weighted fund.”
Also informing the weightings are technical and fundamental inputs, including an expected-return component for individual stocks, momentum analysis and Winton’s own fundamental analysis.