Delegated portfolio management and diversification. Issue 4 (3rd March 2016)

• Record Type: Journal Article
• Authors: Christensen, Michael; Christensen, Michael Vangsgaard; Gamskjaer, Ken
• Is Part Of: Applied economics letters. Volume 23:Issue 4(2016)
• Page Start: 255
• Page End: 258
• Publication Date: 2016-03-03
• Subjects: Delegated portfolio management -- portfolio management -- risk diversification; G11; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2015.1068915
• Languages: English
• ISSNs: 1350-4851

Abstract

Abstract: This article analyses the potential diversification benefits available to high-net-worth investors utilizing multiple portfolio managers. We show that enlisting seven actively managed portfolios from multiple portfolio managers generate significant benefits in terms of risk reduction, and, interestingly, diversification benefits are shown to be larger for low-risk portfolios compared to high-risk portfolios.