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INSURANCE ASSET MANAGEMENT

June 18, 2003

Rebalancing – A Discipline with Merit?

Raghu Ramachandran

Financial analyst Chet Currier calculates the benefits of rebalancing, a subject BBH wrote about last October.

Chet Currier at Bloomberg.com recently wrote:

Earn 30 percent more on your investments without taking extra risk!

No, that isn't some Internet spammer's come-on. It's a result I just produced, on paper at least, running a random test of an under-appreciated money management technique.

The name of this commonplace activity, rebalancing, will never set pulses pounding. It can perform interesting feats nonetheless.

We made a similar point last October in our article- What Are the Benefits of Rebalancing?What Are the Benefits of Rebalancing?What Are the Benefits of Rebalancing?What Are the Benefits of Rebalancing?

To Enrich Investing Results, Just Add Rebalancing
Chet Currier
17 June 2003

What Are the Benefits of Rebalancing?What Are the Benefits of Rebalancing?What Are the Benefits of Rebalancing?What Are the Benefits of Rebalancing?
18 October 2002


Mr. Ramachandran is a Senior Portfolio Strategist.
raghu.ramachandran@bbh.com

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