Keeping Enough Ideas to Counteract Bad Outcomes Maintaining Strict Diversification Rules

There’s More Than One Form of Active Portfolio Management

People tend to assume that the only form of active portfolio management is through relatively concentrated portfolios. We think there's an equally legitimate form of active money management in running a diversified portfolio that has nothing to do with the benchmark. Our mandate is first and foremost the return of capital, which has also so far resulted in above-market returns. With that man date, we don't want a concentrated port folio that bets the farm on a few stocks. This year has been an excellent reminder of how valuable diversification can be as a risk-management tool.

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