NO.PZ202207040100000302
问题如下：
Grasmere Asset Management Case Scenario
Morgan Abernathy, Nathaniel Granville, and Gabriella Carlucci are analysts at Grasmere Asset Management (Grasmere), an investment firm that offers a diversified mix of actively managed equity and fixed-income investment funds. The firm follows the fundamental approach, using both bottom-up and top-down investment management strategies. The analysts meet regularly to discuss investment ideas and related topics.
The meeting begins with a discussion of the fundamental approach to active equity management strategies. The analysts make the following statements:
The approach is a subjective investment process that uses discretion in making decisions.
The portfolio manager’s selections are based on determining a security’s exposure to selected variables that predict its return.
The construction of a portfolio is generally done using a portfolio optimizer, which controls risk at the portfolio level.
The analysts then review Exhibit 1, which describes a selection of the Grasmere equity funds.
Exhibit 1
Grasmere Equity Funds
The analysts made the following points about the potential investments that Fund B might undertake. The fund should be interested in
investing in the shares of a potential acquirer, even in a consolidating industry;
taking a control position in a distressed company’s shares selling at a deep discount to its intrinsic value; and
using its expertise to make long-term investments involving companies in reorganization.
Grasmere’s larger funds have had an impressive long-term record compared with peers. In more recent times, however, the results have been lagging. Positions have become more concentrated than in the past, and the proportion of positions underperforming their respective industries has increased. Carlucci believes managers may have become subject to two biases: an illusion of control and confirmation bias. Carlucci asks Abernathy what steps he could recommend to address the effect of these biases.
The final topic involves a discussion of some high-profile companies that recently released their full-year earnings results. Exhibit 2 contains market data and financial projections on three of the stocks discussed by Grasmere’s analysts. They are considering adding one of these stocks to Fund D.
Exhibit 2
Market Data and Financial Projections of Selected Stocks
Question
As described in Exhibit 1, Fund A most likely follows which investment strategy?
选项：
A.Contrarian B.Deep value C.Restructuring and distressed解释：
SolutionA is correct. Fund A most likely follows the contrarian investing approach. Contrarian managers invest in stocks with low or negative earnings or low dividends. Contrarians expect the stocks to rebound once the company’s earnings rebound. Contrarian investors often point to behavioral finance research that suggests that investors tend to overweight recent trends and follow the crowd in making investment decisions. Therefore, contrarian investors purchase and sell shares against prevailing market sentiment.
B is incorrect. Deep value investing focuses on undervalued companies, which are often in financial distress, that are available at extremely low valuations relative to their assets. The rationale is that market interest in such securities may be limited, which increases the chance of informational inefficiencies.
C is incorrect. Opportunities in restructuring and distressed investing are generally counter-cyclical relative to the overall economy or a sector’s business cycle. A distressed company that goes through restructuring may still have valuable assets, distribution channels, or patents that make it an attractive acquisition target. The goal of restructuring investing is to gain control or substantial influence over a company in distress at a large discount and then restructure it to restore a large part of its intrinsic value.
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