Monday, March 15, 2010

Portfolio management – an alternative

Modern portfolio management theory emphasizes risk management through diversification. Simply put, investors are advised to spread their investments across sectors and asset classes, offsetting risk among component weightings. However, this rigid system of diversification avoids market timing aspects of risk and often exposes investors to drawdowns that could be avoided with an approach that better adapts to the market environment.

There are few money managers that employ more aggressive diversification strategies. One upstart investment firm is focused on systematic trading and has caught my eye – Acorn Global Investments Inc. of Oakville, Ontario. A recent paper explains Acorn’s approach:

Systematic Trading: Diversification Done Right

9 comments:

james moylan said...

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Investmentguruindia.com said...

good article for understanding of investors

must read. keep up the good work

http://www.investmentguruindia.com

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farmland investments said...

Diversification is absolutely critical for investing, no doubt.

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