Ignoring uncertainty in portfolio construction can lead to a large gulf between the realised and expected performance of a strategy.
Randomly selected global equity portfolios have outperformed market-capitalisation-weighted portfolios over the past 15 years.
Adding a new, uncorrelated strategy to a portfolio can improve the risk-adjusted performance of the original portfolio.
When investing in multiple hedge funds, investors eventually face the challenge of finding an effective rebalancing methodology.
Equities and bonds are often assumed to be negatively correlated. This hasn’t always been true.