Strategies
STYLE INDICES CONSTRUCTION
Four Improved Style Groups – Pure and Powerful
Most
of today’s leading style indices are indeed watered down, holding too many stocks that don’t
capture the true characteristics of the style they are meant to represent. And when indices become
diluted, they fail to demonstrate the return pattern of their style as they move through the business
cycle. OakBrook’s Style Indices instead only include those stocks in each group that demonstrate
the strongest characteristics. The benefit is that each of our four style indices has pure style
properties.
Whether used as complements or enhancements to other styles, these indices are powerful tools. Stable Growth and Variable Value styles are under represented in most institutional portfolios and the indices can be used to gain exposure to these styles. Or, Stable Growth and Stable Value can be combined to form a Stable Equity Index, one which offers very attractive defensive properties.
