diversification

“We shouldn't pick and choose among our managers. Once we decide to hire them, the bar is so high that we should hit them hard. We shouldn't take these, like, little, you know, hesitation marks, right? Like, I know a lot of people are like, oh, I'll throw a mil…”

“When you kind of dissect return drivers and if you become overly diversified, all of a sudden it really gets hard to allow those asymmetric bets to be meaningful.”

“The more concentrated an economy is into a certain sector, The less diversification you get by investing your personal assets in that sector as well.”

“What you learn about diversification as well is that the benefits of diversification continue. As you add more and more positions, but it's asymptotic. It becomes significantly less valuable once you're beyond 12 or 15. And 20 to 25, you've gotten 95% of the f…”

“And mathematically, the way to do that is to own a bunch of return streams that are different from one another, meaning they go up and down at different times. And the more reliable that differentiation, the better.”

“Well, if you control the vol, and you know the correlation is more persistent than returns, then your portfolio construction and your strategy construction should rely more on diversification than on target returns.”

“Long-term diversified portfolio is the winning hand in most cases, and we believe within asset classes that it makes sense to have as much concentration as is tolerable, that you're really getting the diversification across the asset classes primarily as well …”

“What really cost a lot of these firms was they bet big either on one company, one industry, one place, and as smart as these people are, and they're really smart strategically because they're investing for longer term. They have no choice. They make mistakes, …”

“When you're talking about just getting access to that market portfolio, diversification is the ultimate free lunch, right? To go from one stocks to 12, to go from the US market to an international market to go from private markets to public markets and have pi…”

“I think you get most of them in eight or 10 names”

“But if you look over the last three years, actually diversification has been significantly negative because obviously bonds and equities have been correlated in a bad way, but alpha has been really, really strong.”

“I don't use the word diversification because we don't assume asset classes behave differently in a particular way. We try to look through that in a more granular way to say, well, these subsets, let's say, of real estate in these geographies will behave this w…”

“Diversification cuts both ways. It eliminates systemic risk, but it also diversifies away your alpha if it's too diversified.”

“I think most of it today is about diversification. It used to be the case that you only participated in these alt strategies for alpha.”

“We continue to be a believer in diversification despite the fact that being invested in a handful of stock in the U.S. Equity markets would have been the best choice over the past 10 years.”

“When we're investing in hedge funds, if you don't have extreme diversification, you're doing things in a cash inefficient way.”