The Risk Contribution Of Stocks

The Risk Contribution Of Stocks

A new white paper by Ampersand Portfolio Solutions, The Risk Contribution of Stocks, puts a spotlight on the risk contribution of stocks in a portfolio and urges investors to diversify into other asset classes. Ampersand Portfolio Solutions, a division of Equinox, collaborates with select asset managers to construct bespoke investment solutions.


See 2017 Hedge Fund Letters.

Qualivian Investment Partners July 2022 Performance Update

stocks performance 1651757664Qualivian Investment Partners performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more Dear Friends of the Fund, Please find our July 2022 performance report below for your review. Qualivian reached its four year track record in December 2021.  We are actively weighing investment proposals. Starting in November Read More

Most investors, both individual and institutional, believe that stocks are a good, perhaps even the best, investment in the long run. However, the reason for expecting good performance from stocks is not always fully understood: Quite simply, it is because they are risky.

Ampersand’s white paper, The Risk Contribution of Stocks, clearly illustrates the riskiness of stocks; a value that escalates when volatility increases. While most investors believe that a 60/40 stock/bond portfolio is well diversified, they are mistaken.

Ampersand analyzed the volatility of stocks and bonds over a 41-year period (1975-2016). They constructed a 60/40 stock/bond portfolio and found that the risk contribution of stocks is a whopping 92%.  An 80/20 stock/bond portfolio is even riskier, with stocks accounting for 98% of the risk. In a 40/60 stock/bond portfolio, 76% of the risk still comes from stocks, and even a portfolio with as little as 20% allocated to