FYI: .The benefits of diversification are often touted, but many investors feel disappointed in diversified portfolios because of the dispersion in performance of the individual holdings.
.In the context of three different unconstrained sleeves, we look at a way to measure and visualize the benefit (or detriment) of diversification based on achieving different objectives.
.Through this lens, we get a picture of how good or bad the results might have been, which can lead to confidence either in the robustness of the allocation or in the need to take a different approach.
.Since we only experience one path of history, it is difficult to assess the benefit of diversification unless we consider what could have happened.
.We believe that taking a systematic approach does not fully remove the art of the analysis but can remove some of the behavioral biases that make sticking with a portfolio difficult in the first place.
Regards,
Ted
https://digioh.s3.amazonaws.com/vendors/vendor_10484/em_files/em_file_159966/Measuring the Benefit of Diversification.pdf?AWSAccessKeyId=AKIAJ23IM33EG3FDC6XQ&Expires=1541690728&Signature=E35gXF3u5P8Dtvx8lcD9Op3dxck=
