That Isn't Diversification


Asset managers who exceed the 30-stock count, the point at which the vast majority of diversification's benefit has been implemented, begin to trend more and more toward being closet indexers. There is nothing worse than what is tantamount to a passive strategy charging active management fees. Perhaps surprisingly, investors are to blame for this.

Gamma Gamma Hey!
One approach to asset allocation that can better position portfolios for increasing volatility is to increase convexity, or gamma. By instituting a barbell approach to asset allocation, portfolios will be positioned for increased payoffs from more extreme events without adjusting the delta, or first derivative effects of changes in the underlying. For example, what's the difference between the following two portfolios?

Portfolio Diversity for Family Offices
The trend amongst many family office managers is to participate in direct investments rather than managed third party investments. This global trend implies an increased workload for the family office and an opportunity for an highly skilled consultant to fill a void.

The Worst Goal You Can Make: A Lesson From a Professional Investor
This article details Kevin s start in real estate investing. It speaks to the importance of goal setting, especially having the right goals.

How to Invest Safely and Generate Income for Life
Get introduced to an investment strategy that has earned over 8% per year compounded over the last 40 years. Simple, safe, less volatile and low cost to implement.

The Best Investment for 2015
Sometimes the best investment is safe investments and 2015 might be one of those times. First, let's look at your investment options. Then, we'll focus on finding the best safe investments for 2015 and beyond.

Family Loans for First-Time Homebuyers: What Are the UK Housing Implications?
To get on the property ladder, young Britons are going to "the bank of mum and dad." What does this adaptive financial strategy mean for housing development?

Is Your Money Safe?
What happens when one begins to find outside sources to invest their money in safely? There are hundreds of opportunities, but the ability to choose safe investments is non-existent. You can find ways to invest your money safely, but the safety you seek is in the mindset of the investor.
That Isn't Diversification That Isn't Diversification Reviewed by ESATRA on 6:03:00 AM Rating: 5
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