Tue, Dec 11, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fund managers often miss the boat on diversifying their own portfolios

Monday, April 02, 2018

Fund managers often invest much of their personal wealth in their own funds. Having 'skin in the game' helps with investor buy-in and can also keep a fund afloat if performance dips. But, without proper diversification, those same managers can end up with the type of concentrated portfolios that they tell investors to avoid.

The Mason Companies a Reston, Virginia based $7 billion RIA has started working with fund managers to help them diversify their portfolios. "What we're doing is going through the overall portfolio and advising on how to improve diversity by investing a portion of a managers liquid wealth," explains Scott George, President, and CIO of The Mason Companies.

The Mason Companies has created a mutual fund selection methodology that looks at 15-16 asset categories and creates a custom blended portfolio with specific allocation targets. Once a portfolio is created, it is assessed every ten days for a potential rebalancing. The methodology allows for allocations to trend 30% above or below target before triggering a buy or sell signal. George explains that this approach can capture excess return in the market without meaningfully increasing risk. "Through our research, we've discovered that the 30 percent range is sort of a sweet spot," he says.

The methodology also takes a historical look at mutual fund families to understand the total overall performance of a fund group in addition to fund family exposures. By l......................

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. Northern Trust builds out alternative funds offering on wealth management platform[more]

    Laxman Pai, Opalesque Asia: Chicago-based asset manager Northern Trust has added private market capabilities to supplement the recently launched ArcLine Alternatives platform for the firm's wealth management clients. The administrator of assets worth $10.8tn said in a press note that the priv

  2. New Launches: Fidelity launches water and waste strategy, NewView Capital debuts with $1.35bn fund, Värde Partners raises $400m for Asia Credit Fund[more]

    Fidelity launches water and waste strategy From Investment Europe: Fidelity has unveiled a strategy focusing on sustainable investment opportunities within the water and waste management sectors. The Fidelity Sustainable Water and Waste Fund seeks to deliver strong risk adjusted returns a

  3. Activists: Neiman Marcus creditor steps up attack on MyTheresa transfer plan, Aphria calls shortseller claims 'false and defamatory', Marijuana stock Aphria plummeted as it fought a short seller who called out 'something very sinister'[more]

    Neiman Marcus creditor steps up attack on MyTheresa transfer plan From Business of Fashion: Neiman Marcus is once again feeling the heat. On Monday, one of its creditors - distressed debt investor Marble Ridge Capital - delivered an urgent letter to to the department store group's board

  4. Outlook: The economist who discovered the yield curve's predictive powers says he's getting worried, The 'big squeeze': Ray Dalio, founder of the world's largest hedge fund, breaks down how the next financial meltdown will look different from the last[more]

    The economist who discovered the yield curve's predictive powers says he's getting worried From CNBC: Arturo Estrella and his former Fed colleagues used to watch the relationship between the 10-year Treasury and the 3-month bill. A lot of people have been focused lately on the di

  5. People: Deutsche Bank appoints new country head in Switzerland, London's MENA Capital and Dubai's Al Mal agree collaboration deal, BlueBay appoints new CIO[more]

    Deutsche Bank appoints new country head in Switzerland From Investment Europe: Deutsche Bank has appointed Claudio de Sanctis as the new chief executive officer of Deutsche Bank (Switzerland) Ltd, effective 1 February 2019, after Peter (Pedro) Hinder decided to step down. The appoint