Diversification Video, Part II
Before watching part II, please watch Alex’s Diversification, Part I Video.
In Part I,
Alex Duty, CFA, CIPM, discusses the functionality of diversification. Alex speaks about investment strategies and the science of a well-diversified fund. Using Alex’s knowledge, one can better understand and achieve higher risk-adjusted returns. This is accomplished by employing a variety of different asset classes in a portfolio. “Diversification does not increase expected returns by itself. However, diversification does decrease volatility without compromising on expected return.”
In Part II,
Alex goes into deeper detail regarding expected returns, diversification, and different time periods. In this explanation, Alex walks us through Portfolio and Average Weighted Sharpe Ratios for stock, bond, and managed future portfolios.
We hope you enjoy this video. Please reach out to White Oaks Wealth Advisors if you have further questions.
Alex Duty, CFA®, CIPM is a Portfolio Manager at White Oaks. He performs investment research, asset allocation of various strategies, assesses client portfolios, and assists with overall client communication.