Alpha Theory recently hosted a conversation on the Concentration Manifesto. To view the presentation and listen to the discussion, please click here.
The Concentration Manifesto suggests that active managers that demonstrate skill should reduce their number of positions from an average of 108 to 20. The goal is to maximize the expected return of the portfolio and allow allocators to gain diversification by investing in multiple concentrated managers. Alpha Theory can help by measuring a manager’s level of skill and in constructing portfolios that maximize expected return.
Download The Concentration Manifesto: contactus.alphatheory.com/concentration-manifesto/
Alpha Theory website: alphatheory.com/
Alpha Theory blog: blog.alphatheory.com/