Portfolio Diversification
topic on 2 shows · 3 statements across 3 episodes
3 statements about Portfolio Diversification, every show
Gilmore: Scenario analysis should replace simple correlation in measuring diversification
“Rather than simply looking at historical correlations, one needs to be thinking about multi-dimensional scenarios and to think about how the portfolio behaves given those scenarios.”
Monk: Portfolios can diversify by drawdown duration, not just volatility
“You can diversify your portfolio according to submergence. You don't just have to diversify according to risk factors and volatility and things like that. You can say, well, this type of asset has this submergence profile, and that asset has this submergence p…”
Zeev: VCs with high hit rates only need 5 to 8 companies
“I do think that the number of course, some absolute number, I think that the higher the Probability of success of the underlying, of each individual underlying investment is the less diversification you need. If you believe that every deal that you do has 50% …”