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Sector Model

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.

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