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Less Can Be More!

Author

Listed:
  • Hayette Gatfoui

    (IÉSEG School Of Management [Puteaux])

  • Christian Walter

    (LAP - Laboratoire d’anthropologie politique – Approches interdisciplinaires et critiques des mondes contemporains, UMR 8177 - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

Abstract

We focus here on the specific management style of a French insurance company SMA BTP. The employed management style allows the management team to improve its diversified portfolio's return. Indeed, the stock sub-portfolio of this insurance company outperforms some known benchmarks such as Euro Stoxx index, CAC 40 French stock index or Euro Stoxx 50 index. We show that SMA BTP's specific management style is optimal in the lens of two basic important criteria, namely the portfolio's excess return and its performance persistence. Such a persistence profile is driven by the trade-off between portfolio diversification and performance concentration.

Suggested Citation

  • Hayette Gatfoui & Christian Walter, 2007. "Less Can Be More!," Post-Print hal-04515402, HAL.
    • Handle: RePEc:hal:journl:hal-04515402
    Note: View the original document on HAL open archive server: https://hal.science/hal-04515402
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    References listed on IDEAS

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