How Many Eggs? How Many Baskets?

Are you looking to optimize your portfolio’s alpha potential? Our latest paper analyzes the topic of diversification of active risk within a multi-manager portfolio. 

This edition of our Fiduciary Insights series, How Many Eggs? How Many Baskets?, presents a framework for rigorously examining the ideal number of investment managers to whom capital should be allocated. In the process, we address the “over-diversification” fallacy of portfolio construction that alpha diversifies away.