Core-satellite investing

Core-satellite investing combines a diversified, low-cost core with a smaller active sleeve. The core carries the long-term plan; satellites pursue selected opportunities without placing the entire portfolio at risk. Combine a diversified, low-cost core with a smaller active sleeve for selected ideas or objectives. Key point: Core-satellite investing is not a style label to follow mechanically. It is a decision process with explicit assumptions, evidence, review triggers, and exit conditions.

1. 1Give the core a clear majority and a stable long-term role.
2. 2Every satellite needs a defined objective, size limit, and benchmark.
3. 3Rebalance so successful satellites do not silently become the whole portfolio.
4. 4Separate the long-term thesis from short-term price movement in Core-satellite investing.
5. 5Write in advance what would make the method unsuitable for the case being analyzed.

1. 1Define the goal and choose a broad core aligned with the required asset allocation.
2. 2Set a total satellite budget and maximum size for each active idea.
3. 3Write a thesis, horizon, benchmark, and exit rule for every satellite.
4. 4Review costs and rebalance on a fixed schedule or allocation threshold.
5. 5Write the main assumptions, fair value range, and monitoring signals before buying.
6. 6Compare actual evidence with the original thesis instead of judging only by unrealized gain or loss.