Wed, Jan 17, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Great Diversification Discussion: Why multi-manager portfolios should resemble a professional toolbox, not a bag of Swiss army knives

Monday, August 28, 2017

Komfie Manalo, Opalesque Asia:

Investors should consider a fund's portfolio and its diversification not just on a stand-alone basis but also within the context of the investor's overall portfolio, said Henri Österlund, founder of activist investing firm Accendo Capital, at the latest Opalesque 2017 Nordic Roundtable held in Stockholm.

Österlund said that investors should force their fund managers to be "naked in front of their strategies" and not automatiically give them the luxury of being diversified. This would make fund managers fully responsible for their trades and not "blame South African miners or Chinese trade or Trump or anyone else for their poor performance."

"Rather, each manager should have a clear-cut strategy to follow, that he is picking up each morning when he goes to work and where he has to perform."

Österlund added that he occasionally debates with potential investors, who might say to him that, "Well, you have four names in your portfolio, it's not diversified enough, so we cannot invest." He added, "I would accept that argument from a small investor with no other equity exposure, but of course the investors we talk to are investing millions or billions, so they are already well-diversified. As a fund manager, I would sleep better at night having a diversified portfolio. But that benefits m......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  2. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  3. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/ A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  4. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  5. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager