The definition of a ‘swing for the fences’
Swing for the fences is a phrase that means to try to earn big returns in the stock market with a daring bet. The term “swing for the fences” has its origins in baseball. Batters who swing for the fences trying to hit the ball over the fence to score a home run. Similarly, investors who “swing for the fences” trying to get big profits, often in exchange for significant risks.
Breaking swing for the fences’
In addition, to make risky investments, the expression “swing for the fences” may also refer to the creation of a large and potentially risky business decisions outside of public markets. For example, the Director-General may “swing for the fences” and try to buy his company’s biggest competitor.
Example swing for the fences, you can invest a significant portion of an individual portfolio in a new initial public offering or IPO of the company. By the nature of VPS are often more risky than investments in more established, blue-chip companieswith a consistent history of profitability, dividends, proven management, and a leading position in the industry. While many IPOs have the potential to earn a home for investors of the industry-changes in technology or interesting new business models, their history profits are often inconsistent (or nonexistent, in the case of many young software companies). Investing a huge part of the portfolio, the IPO can sometimes produce a significant profit, but more often than not might provide undue risk for the investor.
Swing for the fences and portfolio management
Portfolio management is the art and science of balancing an investment portfolio to adhere to specific goals and strategies, asset allocation for individuals and institutions. Portfolio managers balance risk and performance, identify the strengths, weaknesses, opportunities and threats to achieve the optimal result. Portfolio managers rarely swing for the fences, especially if the management of the assets of the client(s). If the Manager simply trade his or her own expense, he or she may be willing to assume more risk; however, when acting as fiduciary of the other party, a portfolio Manager is ethically obliged to act in the interests. This usually means cultivating a diverse mix of investment across asset classes and balancing debt and equity, domestic and international, economic growth and security, as well as many additional trade-offs encountered in the attempt to maximize return at a given appetite for risk, not to make too much emphasis on high interest rates.