In our previous report, we discussed how practitioners typically measure investment risk. We also noted how there are ways to reduce risks in a portfolio, such as ‘diversification,’ which can help ...

Despite decades of predictions to the contrary, the boring old 60/40 portfolio of stocks and bonds refuses to die and even survives as a reference portfolio for many institutional investors. The ...

We’re moving from narrow growth powered by big AI companies to earnings-driven returns from a wider array of sectors,” says ...

Portfolio construction is crucial for any investor, whether a beginner or experienced, as it helps balance risk and maximize returns. The key is to ensure each investment serves a specific purpose ...

Advisors must juggle short- and long-term considerations when they make changes to their clients’ asset allocations. They have support for this process in the form of research from home offices and ...

Today’s portfolio performance environment is harsh. Regardless of whether they are pursuing long-only cash strategies or emerging-markets derivative swaps; operating in developed or frontier markets; ...

The expected comeback of the 60/40 portfolio in the first half of 2023 has taken a pause as stock and bond returns face the pressure of higher yields. Continued macroeconomic uncertainty threatens to ...

Financial advisors are increasingly outsourcing portfolio construction as the demands of running a practice shift toward client growth and relationship management, according to new research. Model ...

The mean-variance optimization suggested by Henry Markowitz represents a path-breaking work, the beginning of the so-called Modern Portfolio Theory. This theory has been criticized by some researchers ...

This focused session discusses factor misalignment in portfolios construction, specifically around how it occurs when mean-variance optimization is performed on an alpha factor that is not contained ...