Whitepaper

Investors are struggling to achieve long-term return targets in today’s low yield environment. To close the gap, many investors feel forced into concentrated equity portfolios. These portfolios are designed to thrive only during very specific environments characterized by:

• strong growth,
• benign inflation, and
• abundant liquidity conditions.

In other common environments, these portfolios are susceptible to catastrophic losses, like we witnessed in 2008.

There may be a much better way.

The fathers of modern finance, like Harry Markowitz and Bill Sharpe, showed that investors can achieve their return objectives with much more resilient portfolios. By maximizing diversification, and scaling exposure to the portfolio along the Capital Market Line, investors may be able to achieve even aggressive return targets with much less risk of deep, sustained losses.

In this paper you will learn:

• The difference between portfolios formed along the Efficient Frontier and the Capital Market Line
• How portfolios formed along the Capital Market Line are designed to meet return objectives with substantially less risk
• Real-life practical examples of this methodology that you can use right now to improve investment outcomes in the short and long-term.