Two things typically hold true in beaten down markets. First, value investors — with their love of misunderstood and out-of-favor stocks — often shine. Second, dividend-paying stocks generally outperform their non-dividend-paying...
Northern Large Cap Value Fund
A: The BARRA Large Cap Value Index is the fund's benchmark. We are benchmark aware, but we are stock pickers. We find the names and then decide the allocation based on our views of the market and the stocks. We look at total active risk of our portfolio relative to the benchmark - sector weighting is one component to that. Too high active risk, you look like you are not style pure and too low active risk makes you look like you are closet indexer. So we monitor our total active risk and make sure that it is in line with our expectation.
The nature of our stock screening keeps us at a very style pure level. One of the reasons investors are attracted to us is because we stay style pure in our investment discipline. They understand that in a typical market we will do what we tell them we plan to do.