Subject: OT: weighting and rebalancing
Numerous backtests have shown that periodic rebalancing increases portfolio return, but what is the best method for rebalancing? Rebalance to equal weight? Rebalance in line with fair value growth (maybe as estimated by Morningstar) or by some proxy for fair value growth such as revenue growth? Other? Also what is the optimal starting weight of the various holdings? Thank you for your input.
rrr12345