Professional Wealth Managementt

By PWM Editor

Loosening the constraints How do some equity fund managers make more money than others? The essential principle is easy to understand: buy the right stocks at the right time and you should generate outperformance. But how do managers structure these multiple stock bets to create equity portfolios with the ability to access the highest potential returns? Traditionally the approach has been to take fewer bigger bets, constructing a more concentrated portfolio. This means a fund with just the stocks the fund manager really likes – their high conviction ideas with the strongest upside potential. However, the concentrated nature of these portfolios also means that they experience high levels of volatility due to the increased level of risk. Is there an alternative which can be offered to meet the demand for strong fund performance but with potentially less risk exposure? Can’t high returns be created from a more diversified portfolio?

If you are already a registered user, please click here to login.

You have reached your limit for free views on pwmnet.com

Simply register for FREE to gain FULL access to all Professional Wealth Management content

As a registered user, you will gain quick, easy and instant access to 
pwmnet.com. Registered users will benefit from:

  • Full access to all articles and videos
  • Monthly e-alerts featuring the latest news
  • Coverage of the latest opportunities, challenges, game-changing regulations and competing markets
  • Focused coverage for both European and Asian distributors
  • Bespoke PWM research e.g. sub-advisory; asset allocation; Global Private Banking Awards

pwmnet.com provides you with the latest commentary, in-depth analysis, high level interviews, videos and specialist reports on the wealth management industry.