Optimal Execution Strategy for Portfolio Rebalancing

James is a portfolio manager responsible for executing trades for a large institutional client. He is considering various execution strategies for rebalancing the client's equity portfolio after a significant market movement has skewed the original allocations. James must choose the most efficient execution strategy that minimizes market impact and transaction costs while ensuring liquidity in the execution process.

He has narrowed his choices down to three specific strategies:

1. **VWAP (Volume Weighted Average Price)**: This strategy seeks to execute the trade in proportion to the market's volume throughout the day, aiming to achieve an average execution price that reflects the market’s trading activity.

2. **TWAP (Time Weighted Average Price)**: This strategy splits the order into smaller trades that are executed evenly throughout a specified period, disregarding the volume patterns.

3. **Implementation Shortfall**: This strategy focuses on minimizing the difference between the expected cost of a trade (based on pre-defined execution prices) and the actual cost incurred when executing the trade.

Given the market conditions and the need for an efficient rebalancing strategy, which execution method should James select to optimize his trade execution?