WEBINAR

Deconstructing Diversification: A Novel Approach to a Long-Standing Strategy
February 24, 2021 @ 2:00 pm - 3:00 pm
On Wednesday, February 24th we hosted a webinar featuring Miguel Sosa, Research Strategist & Product Specialist with Bluerock. Traditionally, “diversification” has been understood to be low correlation (think of putting eggs in baskets), and to a lesser extent low volatility (think of holding cash), but with the development of modern…
Presenter /s: Miguel Sosa

On Wednesday, February 24th we hosted a webinar featuring Miguel Sosa, Research Strategist & Product Specialist with Bluerock.

Traditionally, “diversification” has been understood to be low correlation (think of putting eggs in baskets), and to a lesser extent low volatility (think of holding cash), but with the development of modern financial markets, the mindset of investors has seen a shift to expecting negative correlation. In other words, investors ask, “How can I find effective ‘insurance’ for those sudden and large sell-offs?”

In this presentation, Miguel will discuss, through quantitatively deconstructing diversification, that only a small portion of diversification’s benefit comes from negative correlation (or the “hedging effect”), contrary to many investors’ expectations. The vast majority of the benefit comes from diversifying investments with low volatility and low correlation to a portfolio’s equity exposure.

Given this conclusion, we propose an updated allocation approach to the traditional equity/fixed income method to diversify a portfolio more effectively and potentially increase risk-adjusted returns. 

On-Demand

Please note: This webinar is restricted to the following groups: wealth advisors, broker dealers, and Elite Blue Vault partners. The replay will be available to Blue Vault subscribers and partners only. For information about becoming a subscriber, click here.

Alternative Investment Sponsors may be contributing members of Blue Vault, which could create potential conflicts of interest. Blue Vault members and followers should consider this in their review and analysis. Information here is intended only for institutional, broke dealer or registered investment adviser user. This information is prohibited for use by the general public.

Featured Speakers

Miguel Sosa
Research Strategist & Product Specialist Bluerock Real Estate

Recent

Most Popular

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now

Past Webinars

Alternative Investments Due Diligence Experts June 24 @ 2:00 pm - 3:00 pm

Alternative Investments Due Diligence Experts

Demand for alternative investments continues to grow at an accelerated rate as both advisors and investors seek solutions to further…
Catherine Bowman, Esq.
| Moderator
Larry Barocas
| Panelist
Matt Mayer
| Panelist
Seth Stuart
| Panelist
Behind the V(ALT) Door June 18 @ 2:00 pm - 3:00 pm

Behind the V(ALT) Door

Watch Behind the V(ALT) Door, a deep dive into who Blue Vault is and how we empower wealth advisors with…
Stacy Chitty
| Speaker
Legends of Distribution Discuss Alts Evolution: Part One May 14 @ 2:00 pm - 3:00 pm

Legends of Distribution Discuss Alts Evolution: Part One

Watch Larry Goff, Jeff Schwaber, and Martel Day in this compelling conversation on the evolution of alternative investments over the…
Larry Goff
| Speaker
Jeffrey Schwaber
| Speaker
Martel Day
| Speaker
Stacy Chitty
| Moderator