Which of the following is NOT one of the types of portfolio action managers employ to add value?

Risk mitigation strategies are not typically classified as a type of portfolio action aimed at adding value in terms of performance enhancement or returns. Instead, they are primarily focused on protecting the portfolio from downside risks and volatility, often implemented through techniques such as diversification, hedging, or using derivatives. While risk management is a crucial aspect of portfolio management, it does not directly seek to enhance returns but rather aims to preserve capital and manage risk levels.

In contrast, tactical asset allocation involves adjusting the weightings of asset classes in a portfolio based on market conditions or forecasts to capitalize on predicted market movements, thus potentially enhancing performance. Style and sector exposures refer to the emphasis placed on specific investment styles (like growth vs. value) or sectors (like technology or healthcare), which can exploit inefficiencies in the market to generate alpha. Individual security exposures focus on selecting specific securities that are expected to outperform the market, thereby directly attempting to add value to the portfolio. Each of these actions is a strategy intended to enhance returns or improve overall portfolio performance.