File Outline Insight

More Than a Number

Active large-cap managers often increase portfolio holdings in hopes of diversifying risk that is not otherwise being properly measured and managed. Allspring’s Special Global Equity team sees a better way.


9/19/2023

16 min read


Topic

Equities

Key takeaways

  • Active large-cap managers often seek to diversify risk by increasing portfolio holdings, but evidence does not support this practice.
  • Allspring’s Special U.S. Large Cap Value Equity portfolio combines a unique approach to stock selection with a meticulous portfolio construction process, aiming to neutralize undesirable risks while allowing security selection to drive returns.
  • Results from the past year show lower tracking error relative to peers and top-decile risk-adjusted returns, as measured by the information ratio and Sharpe ratio.
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