English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Zendy Plus

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Zendy Tools

Zendy Open

We investigate the impact of big winner stocks on the performance of activeand passive investment strategies using a combination of numerical andanalytical techniques. Our analysis is based on historical stock price datafrom 2006 to 2021 for a large variety of global indexes. We show that thelog-normal distribution provides a reasonable fit for total returns for themajority of world stock indexes but highlight the limitations of this model.Using an analytical expression for a finite sum of log-normal random variables,we show that the typical return of a concentrated portfolio is less than thatof an equally weighted index. This finding indicates that active managers facea significant risk of underperforming due to the potential for missing out onthe substantial returns generated by big winner stocks. Our results suggestthat passive investing strategies, that do not involve the selection ofindividual stocks, are likely to be more effective in achieving long-termfinancial goals.

The impact of big winners on passive and active equity investment strategies