Are Sectors the New Factors?

When Markets Change, Diversification Evolves.

In this paper, we look inside the Holy Grail of diversification and see how it works in a world where financial markets are as complex as they are fast-paced.

As we will see, we should not take diversification for granted but instead be ready to identify, adapt and quickly exploit diversifying opportunities – like the ones offered from sectors and risk factors – as they arise.

What is needed, is to take a step further: from a well-known principle to a scientific and opportunity-driven approach to diversification to guide investment decision making. 

Inside:

  • The E=mc2 of Finance
  • The More The Merrier? Not Always
  • Opportunities Lie Between and Within Asset Classes
  • Why Sectors Matter
  • Not All Sectors Are Born Equal
  • Where do we go from here?

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