I have three different sub portfolios with different relative target sizes:
Portfolio Target size Actual
Global momentum 75% 86%
Trending value 20% 10%
Opportunities 5% 4%
I am planning to increase Trending value and reduce the Global momentum closer to their targets. My idea is to do this gradually as stocks are replaced in Global value. When a stock is replaced (according to the rules), I increase the amount in the replacement stock and sell off the corresponding amount in the Global value portfolio.
With this approach I expect to come closer to the target sizes within a half to one year from now. This depends of course also on the relative performance of the portfolios from now on.
Portfolio Target size Actual
Global momentum 75% 86%
Trending value 20% 10%
Opportunities 5% 4%
I am planning to increase Trending value and reduce the Global momentum closer to their targets. My idea is to do this gradually as stocks are replaced in Global value. When a stock is replaced (according to the rules), I increase the amount in the replacement stock and sell off the corresponding amount in the Global value portfolio.
With this approach I expect to come closer to the target sizes within a half to one year from now. This depends of course also on the relative performance of the portfolios from now on.
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