%0 Journal Article %A Henry Willoughby %T Implementing a Large Portfolio Restructuring %D 2002 %J Trading %P 67-75 %V 2002 %N 1 %X Careful analysis of the expected transaction costs of implementing a significant restructuring of an investment fund—whether a change in investment manager, asset liquidation, or other event—is essential. This report describes a technique that can be used to optimize the implementation strategy. This method helps in understanding the crucial factors affecting the transaction costs that can be incurred when executing very large trades. Comparison of the estimated adverse price impact from executing the trade quickly and the consequent reduction in portfolio exposure risk should be a factor in determining an optimal cost-minimizing execution period. The method can also address other strategic exposure management decisions, such as hedging instruments and hedging strategies. %U https://guides.pm-research.com/content/iijtrading/2002/1/67.full.pdf