Diversification
The Global Markets Program uses a high level of diversification as a tool that the manager believes will lead to improved risk adjusted return. In assembling a portfolio, the manager generally puts on dozens of positions from the equity index, fixed income, physical commodity and currency sectors. These markets provide exposure to many different economic factors affecting individual markets and geographic regions. While some of these markets may be correlated over the short term, many times they will realize surprisingly different performance over the longer term, providing improved risk adjusted return over the longer time frames that the manager focuses on.
The Global Markets Program uses a high level of diversification as a tool that the manager believes will lead to improved risk adjusted return. In assembling a portfolio, the manager generally puts on dozens of positions from the equity index, fixed income, physical commodity and currency sectors. These markets provide exposure to many different economic factors affecting individual markets and geographic regions. While some of these markets may be correlated over the short term, many times they will realize surprisingly different performance over the longer term, providing improved risk adjusted return over the longer time frames that the manager focuses on.