Magazine article from our research archive:

Varied asset classes offer a faux diversity.

Byline: Cormorant Capital says IFAs wrongly assume adding asset classes creates diversity

Financial advisers are achieving false portfolio diversification by adding more classes to the mix, according to independent asset allocation specialist Cormorant Capital.

Steve Williams, managing director of Cormorant, said certain market cycles could result in almost every asset class performing similarly.

"People assume that you add another asset class and, because it has low correlation with other holdings historically, it is providing diversification," he said.

He warned of the danger of relying entirely on past performance data to work out future risk, returns and ...

Related newspaper, magazine, and journal articles:

See all results. Or, try our Advanced Search.

Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 60 million articles! Access over 3,500 publications with a FREE trial!