Diversification Is a Balancing Act

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Diversification Is a Balancing Act
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This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

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  • Diversification is necessary to reduce risk, but too much diversification reduces chances of outperformance
  • Diversification is a balance between risk and return
  • A concentrated portfolio uses diversification to reduce risk but increases the chance of outperformance

 

Full paper available for free at SSRN.

 

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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