True diversification is not about portfolio insurance

Jason Koo | Macquarie Investment Management | 21 August 2019 | 0.25 CE

Investors want it all from their alternatives. They want their alternatives to keep up with equities in bull markets, and they expect alternatives to provide portfolio insurance when markets fall. Insurance would be relying on equity corrections to generate returns. True diversification, rather, is all about adding independent sources of return to portfolios. Th...