Posted inPortfolio Management

Concentrated vs Diversified Portfolios

A complete guide to concentrated vs diversified portfolios — the math of how diversification reduces risk, diminishing returns to adding more holdings, famous concentrated investors, position sizing frameworks like Kelly Criterion, and how to decide which approach fits your situation.
Posted inPortfolio Management

Core-Satellite Portfolio Strategy

A complete guide to the core-satellite portfolio strategy — how the core and satellite layers work together, sizing the split, tax and cost efficiency, common satellite strategies, and how to build one step by step.
Posted inPortfolio Management

Risk Parity Investing Explained

A complete guide to risk parity investing — how it works, the math behind equal risk contribution, leverage's role, the classic 60/40 problem it addresses, historical performance during 2022, and its risks and limitations.
Posted inPortfolio Management

Portfolio Rebalancing Strategies

A complete guide to portfolio rebalancing strategies — calendar-based, threshold-based, and hybrid rebalancing, the volatility-harvesting math behind rebalancing, tax and cost considerations, and how to choose a rebalancing policy.
Posted inPortfolio Management

Value at Risk (VaR) Explained

A complete guide to Value at Risk (VaR) — how it's calculated using historical, parametric, and Monte Carlo methods, worked examples, Conditional VaR, limitations exposed by the 2008 crisis, and how it compares to maximum drawdown.