An investment strategy deployed by fund managers designed to maximize profits and outperform a designated benchmark.

Active management implies a hands-on, engaged type of portfolio management. The investor or portfolio manager tracks the market and makes decisions to sell, retain or purchase assets based on subjective analytical assessments of market trends.

The goal in active management is to perform better than a given asset index such as the S&P 500 over a specific timeframe.

A term that is used to describe the purpose of something, usually a solution in response to a particular problem.

The term ‘ad hoc’ is Latin in origin and loosely translates ‘to this’ but implies ‘for this purpose.’ The term is popular in political and computer programming circles where the meaning is limited to describing specific issues and possible solutions to said issues. Thus, ad hoc is generally used as an indicative term for a subject matter and whatever has been developed to resolve this issue.

An ad hoc measure for day trading, for example, would be a trading strategy designed particularly for day trading and not other types of trading. Similarly, Naive Bayes can be presented as an ad hoc solution for effective crypto bot trading instead of simply listing the different bot trading strategies.

In economics, a concept that describes one party's ability to produce a good or service with greater efficiency than another party.

Absolute Advantage is an economic term propounded by Adam Smith in the context of international trade. The concept underpins the idea that a party (an individual, organization or country) should specialize in the goods or services for which they exhibit absolute advantage over the competition.

An entity can attain absolute advantage by spending less per unit on production, making the process more efficient, or decreasing the number of inputs.

Active Management

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