Zombie Allocations

Also: Zombie-Allokationen

Zombie allocations are portfolio positions held only because they are part of an index or a passive bundle — not because they carry an investment thesis of their own. Broad index ETFs assign weaker names the same weight as strong ones, so mediocrity and underperforming business models are kept on life support inside the portfolio. Portfolio DOC permits no zombie allocations: every position must carry a defensible thesis and a measurable contribution to the whole.