Category Asset Allocation & Portfolio Management

Concentration vs. Diversification

Concentration vs. Diversification This topic on “concentration” was triggered by a number of recent articles about managers focusing on concentrated portfolios, the latest a blog by Jonathan Chevreau on “Steadyhand- A fund family for mutual fund sceptics” . Chevreau talks about Tom Bradley’s new actively managed five -fund family which differentiates itself by charging reasonable […]

‘Core-Satellite’ Investment Approach

‘Core-Satellite’ Investment Approach (Originally posted December 13, 2007; re-posted in 2012) The debate about advantages of active vs. passive investing should be over. The overwhelming evidence suggests that it is extremely difficult to beat the indexes on a sustained basis, especially after management expenses, and it just as difficult to identify a priory who will […]

Portfolio Management

Portfolio Management Investment Strategy Given a Strategic Asset Allocation (the proportions/weights of the various asset classes), then you must find the appropriate vehicle to implement each asset class in the portfolio. For each asset class one can choose a passive (composition same as the index of the asset class) or an active approach (whereby composition […]

Asset Allocation

  Asset Allocation It is well known that risk and return are closely related. Higher returns are generally accompanied by higher risk (or variability of returns, usually measured by standard deviation of returns). For example, CDs or GICs (up to federally insured amounts) issued by banks have lower but fixed returns than expected returns of […]