The Columbine Sector Model is designed to forecast alphas within individual
economic sectors. The model capitalizes on the observed fact that companies
in different economic sectors often have very different characteristics and
need to be judged by different standards. The Sector Model accomplishes this
by identifying each sector's distinctive response to momentum and valuation
forces in the markets. Sector-specific analytical frameworks forecast each
individual stock's probable excess return (alpha) as far out as three years
in the future.
The Sector Model is appropriate for use by portfolio managers whose results
are judged against a particular sector peer group. Managers who utilize a
sector-neutral or top-down approach to economic sector exposures will find
the Columbine Sector Model particularly helpful.
We introduced the Sector Model in 2001.
Request more information on the Sector Model