Featured Blog

Defensive diversification

By treating diversification as an unmitigated good, investors by and large ignore the damage that it does to returns. We would do well to channel Buffett who once remarked that “diversification is protection against ignorance; it makes little sense if you know what you’re doing.” The outcome of an obsession with benchmark-relative performance together with principal-agent problems is “defensive diversification”.

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Latest Blogs

Asset mispricing: the ignored externality

The externalities of greatest interest in contemporary discussion typically fall under the E, S and G headings. However, this leaves a critically important externality – that of asset mispricing – largely ignored. Asset owners should broaden their awareness of the externalities that arise from their investment approach.

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The transparency fallacy

One of the recommendations emerging from the recent CMA review into the investment consulting marketplace is for greater transparency around fiduciary manager performance. The resulting proposal has garnered almost universal support, but may create some damaging unintended consequences.

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