Blow Up Risk – How Tony Stark Would Build A Portfolio

Blow Up Risk – How Tony Stark Would Build A Portfolio by Maz Jadallah – AlphaClone

Blow up risk is one of the most important and difficult investor risks to manage.  It comes in two flavors – manager blow up risk and market blow up risk.  Diversification is the best way to mitigate over concentration in a manager or investment product but diversification presents its own set of challenges.  What products do I choose to meet my investment objectives?  How many?  How do I know the products I selected are the right ones more me today and in the future?  Diversification also doesn’t provide much help during broad market blow ups.

There’s no easy way to insulate a portfolio...