Ultimate Position Sizing Guide Part 2

Structured position sizing doesn’t just improve portfolio construction, it enhances the entire research process. In Part 2 of our white paper series, we share why the real alpha lies in the mechanics of process and discipline.

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Drawing from over 20 years of data, 300+ firms, and more than 2 million price target forecasts, we quantify the upside of a systematic sizing framework and uncover the behavioral and structural obstacles that prevent most managers from capturing it.

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What You’ll Learn in Part 2

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Why Structure Drives Performance

Learn how linking position size to expected return creates a measurable feedback loop that boosts both idea quality and portfolio return.

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The Power of Process Discipline

See how regular price target updates and rigorous maintenance improve stock selection alpha—and by how much.
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Common Obstacles to Adoption

Understand the reasons managers resist structure, and how these habits and biases quietly drain performance.
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The Feedback Loop Problem

Discover why it's difficult to assess sizing effectiveness and how a structured process turns ambiguity into insight.
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Data-Backed Evidence

Explore findings from our analysis of hundreds of portfolios and the link between process rigor and alpha capture.
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What’s next in our series

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Part 3: Fundamental Optimization & Position Sizing Best Practices

Learn how to transition from intuition-based sizing to a structured, repeatable process using Fundamental Optimization, ensuring alignment between research and portfolio construction.
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