Glossary entry (derived from question below)
English term or phrase:
top-down
English answer:
from a large, basic unit to smaller, detailed subunits
Added to glossary by
Balasubramaniam L.
Jul 8, 2005 01:52
18 yrs ago
34 viewers *
English term
User Manuals, Codes of Conduct, Medical
Native in: Malay 
Works in: English to Malay, Malay, Malay to English
top-down and bottom-up
English
Bus/Financial
Investment / Securities
"We shall apply the same investment methodology of top-down and bottom-up analyses currently adopted for our existing funds to the overseas portfolio."
Does this mean to bring the top one down, and push the bottom one up?
Thanks.
Does this mean to bring the top one down, and push the bottom one up?
Thanks.
Responses
| 4 -2 | top down > from a large, basic unit to smaller, detailed subunits |
Balasubramaniam L.
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| 3 +2 | I think this explains it |
Robert Donahue (X)
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Responses
-2
7 mins
Balasubramaniam L.
India
India
Works in field
India
Fast, accurate, elegant translation
Native in: Hindi
Works in: English to Hindi, Hindi
Related KudoZ points
:
4
Selected
top down > from a large, basic unit to smaller, detailed subunits
Top down means a process that progresses from a large, basic unit to smaller, detailed subunits.
Bottom up is just the opposite of the above.
http://www.answers.com/top down analysis
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Note added at 1 day 10 hrs 18 mins (2005-07-09 12:11:26 GMT) Post-grading
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top-down
An investment strategy which first finds the best sectors or industries to invest in, and then searches for the best companies within those sectors or industries. This investing strategy begins with a look at the overall economic picture and then narrows it down to sectors, industries and companies that are expected to perform well. Analysis of the fundamentals of a given security is the final step.
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Note added at 1 day 10 hrs 19 mins (2005-07-09 12:12:16 GMT) Post-grading
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bottom-up
An investment strategy in which companies are considered based simply on their own merit, without regard for the sectors they are part of or the current economic conditions. A person following this strategy will be looking very closely at the company\'s management, history, business model, growth prospects and other company characteristics: he or she will not be considering general industry and economic trends and then extrapolating them to the specific company. Followers of this strategy believe that some companies are superior to their peer groups, and will therefore outperform regardless of industry and economic circumstances. The purpose of bottom-up investing is to identify such companies.
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Note added at 1 day 10 hrs 56 mins (2005-07-09 12:48:49 GMT) Post-grading
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bottom-up
An investment strategy in which companies are considered based simply on their own merit, without regard for the sectors they are part of or the current economic conditions. A person following this strategy will be looking very closely at the company\'s management, history, business model, growth prospects and other company characteristics: he or she will not be considering general industry and economic trends and then extrapolating them to the specific company. Followers of this strategy believe that some companies are superior to their peer groups, and will therefore outperform regardless of industry and economic circumstances. The purpose of bottom-up investing is to identify such companies.
Peer comment(s):
| agree |
Nigel Jones
8 mins
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Thanks.
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| disagree |
jennifer newsome (X)
: I'm sorry, this is just wrong. The example you provided does not provide an explanation for either top-down or bottom-up analyses. If it was as easy as looking it up on answers.com I am sure Ramona could have done that herself.
49 mins
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The mind is so fickle Jennifer, it sometimes forgets even what it knows, or omits to follow up the most obvious solution to a problem, especially when it is in a pressure situation. In such cases, it is sometimes worthwhile to point out the obvious.
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| neutral |
Ralf Lemster
: Correct from a theoretical point of view - but how does that explain the concepts in the context of investment analysis?
4 hrs
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My intention was only to give the theoretical meaning of the terms in case the asker was not familiar with them. Given this information, I hoped, the rest would be clear from the context.
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| disagree |
Robert Donahue (X)
: I refrained from doing this while the question was open but now that the "horse is out of the barn" so to speak I have to disagree. Your answer is too simplistic (perhaps why it was chosen) and does not explain the terms in a financial sense. Sorry Bala.
10 hrs
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I understand. Sometimes, when you are in the thick of a job, even a simplistic suggestion pulls you out of a rut. You would have faced such a situation too, I am sure.
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| disagree |
gtreyger (X)
: I don't seem to understand why you added info to your answer post grading? Robs answer was informative enough. Is it to make sure that your answer doesn't look cheap? Or is there another reason that just escapes me?
1 day 11 hrs
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No, nothing like that. While looking up something, I came upon these definitions and thought of putting them up, in case any one found them useful.
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4 KudoZ points awarded for this answer.
Comment: "Thanks, this works for me."
+2
38 mins
I think this explains it
Examining the fundamentals of individual companies is a great way to find good stocks if you have time for research. Another way: Pinpoint trends in the economy, then determine the industries and companies that might benefit -- a stock-selection technique known as top-down analysis.
http://moneycentral.msn.com/articles/invest/strat/3023.asp
For bond products which invest strongly or exclusively in corporate bonds, bottom-up analysis is gaining increasingly in importance. In bottom-up analysis, COMINVEST’s credit specialists calculate changes in ratings and spreads with the aid of in-house models and implement these in the form of individual recommendations.
http://www.cominvest-am.com/portfoliomanagement/investmentpr...
Risk-conscious investment process
We follow a systematic, rigorous selection process in our analysis of fund prospects. The combination of a top-down and a bottom-up process is one of the keys to our success.
***This particular site provides a nice illustrated explanation***
Top-down approach
With our proprietary stochastic model capabilities and based on investors' needs, we design the diversification criteria, optimise commitment planning and forecast cash flows with appropriate risk tolerances. Our priority is to create a well-diversified portfolio by vintage year, region, financing stage and industry.
Risk-conscious investment process
We follow a systematic, rigorous selection process in our analysis of fund prospects. The combination of a top-down and a bottom-up process is one of the keys to our success.
Top-down approach
With our proprietary stochastic model capabilities and based on investors' needs, we design the diversification criteria, optimise commitment planning and forecast cash flows with appropriate risk tolerances. Our priority is to create a well-diversified portfolio by vintage year, region, financing stage and industry.
Bottom-up approach
The aim of our bottom-up analysis is to select and invest in the most promising private equity funds. We place greatest emphasis on the quality of the fund manager and the track record. Our consistent and disciplined fund selection process reflects this priority by focusing on:
http://www.swissre.com/INTERNET/pwswpspr.nsf/fmBookMarkFrame...
http://moneycentral.msn.com/articles/invest/strat/3023.asp
For bond products which invest strongly or exclusively in corporate bonds, bottom-up analysis is gaining increasingly in importance. In bottom-up analysis, COMINVEST’s credit specialists calculate changes in ratings and spreads with the aid of in-house models and implement these in the form of individual recommendations.
http://www.cominvest-am.com/portfoliomanagement/investmentpr...
Risk-conscious investment process
We follow a systematic, rigorous selection process in our analysis of fund prospects. The combination of a top-down and a bottom-up process is one of the keys to our success.
***This particular site provides a nice illustrated explanation***
Top-down approach
With our proprietary stochastic model capabilities and based on investors' needs, we design the diversification criteria, optimise commitment planning and forecast cash flows with appropriate risk tolerances. Our priority is to create a well-diversified portfolio by vintage year, region, financing stage and industry.
Risk-conscious investment process
We follow a systematic, rigorous selection process in our analysis of fund prospects. The combination of a top-down and a bottom-up process is one of the keys to our success.
Top-down approach
With our proprietary stochastic model capabilities and based on investors' needs, we design the diversification criteria, optimise commitment planning and forecast cash flows with appropriate risk tolerances. Our priority is to create a well-diversified portfolio by vintage year, region, financing stage and industry.
Bottom-up approach
The aim of our bottom-up analysis is to select and invest in the most promising private equity funds. We place greatest emphasis on the quality of the fund manager and the track record. Our consistent and disciplined fund selection process reflects this priority by focusing on:
http://www.swissre.com/INTERNET/pwswpspr.nsf/fmBookMarkFrame...
Peer comment(s):
| agree |
Can Altinbay
53 mins
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Thanks Can.
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| agree |
Ralf Lemster
: Right - 'top-down' means to first select the country/region and sector, and then to select individual equities; 'bottom-up' means to start with stock-picking, followed by overall adjustments to restrictions, or country/regional/sector exposure
4 hrs
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Thanks Ralf (and excellent summation of this too). : )
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Discussion