The opportunity to invest with what S&P IQ calls the "Smart Money" is too promising to ignore. Following the work of an experienced and successful activist provides intelligent investors with a fertile list of undervalued targets for which the activist envisions a strategy of change designed to produce a clear path to value creation and a high probability of success.
Minimizing volatility is important to investment managers focused on capital preservation. After all, lower volatility helps protect capital and improve the key portfolio performance metric, the Sharpe Ratio, which is equal to the average annualized return divided by annualized volatility. An acceptable Sharpe Ratio for a portfolio starts in the 1.8 range.