Tue, Mar 20, 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. John Paulson, once the industry's largest hedge fund, to return some investors' money[more]

    Komfie Manalo, Opalesque Asia: John Paulson is reported to be retuning some of his investors' money as a number of his hedge funds continue to suffer setbacks, reports

  2. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/Streetinsider.com: Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  3. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t

  4. Institutional Investors - Overdrawn pension fund scores gains[more]

    From Newhavenindependent.org: Investments in big banks, pawn shops and rolling papers helped boost public safety workers' underfunded pensions this past calendar years, according to newly released figures. After recording middling returns in recent years, the Police & Fire Pension Fund (P&F) notched

  5. Hot hedge fund loses 21% after bet on volatility goes wrong[more]

    From Bloomberg.com: In December, Shahraab Ahmad shared with his hedge fund clients the principle that helped him trounce peers for two turbulent decades: steer clear of the crowd. He'd turned $50 million into an operation with more than $700 million over three years and delivered market-beating retu