Each year, PortfolioConstruction Conference features a core, 13-hour independent plenary program. It is interspersed twice daily with six concurrent Due Diligence Forum sessions, delivering research papers developed for Conference by our carefully selected Partners...

Due Diligence Forum speaker

Hamish Douglass
Chairman
Magellan Financial Group

Due Diligence Forum summary

There is a global trend towards concentrated portfolios. This is particularly evident in the institutional space, however sophisticated advisers and investors are increasingly demanding access to these portfolios. The rationale for this is threefold: 
- concentrated portfolios mitigate risk of over diversification in multi-manager structures and model portfolios;
- a significant body of academic evidence suggests that incremental reduction in portfolio risk above 20 randomly selected stocks is immaterial; and,
- portfolio concentration not only provides the manager with additional excess return opportunity but also an increased ability to protect the portfolio.

This session explores whether concentrated portfolios are appropriate for your client portfolios.