Return Stacked® Portfolio Solutions
In this article, we’ll explore a portfolio construction approach that utilizes basic diversification concepts with Return Stacking to help minimize adverse economic impacts while maximizing chances of business success.
As asset managers, we tend to spend a lot of our time and energy improving what goes into an investment portfolio. What this effort may miss, however, is the entire wealth picture of a client. In many cases, investors will hold ample cash reserves, kept entirely separate from his or her investment portfolio, for a variety of short-term liquidity purposes.
In this video we discuss the business risk faced by financial advisors from tracking error risk and line item risk. Use the example of the SocGen Trend Index to illustrate the challenges of adding diversifiers to a portfolio and highlights the concept of Return Stacking as a possible solution.
In this video, I discuss a key metric that is crucial for managing the risk of an asset management firm and is highly relevant for financial advisors as well. I introduce the concept of the revenue weighted average portfolio and explain how it can help assess the volatility of firm revenue and identify key risk factors.