The benefits of greater concentration

Franklin Templeton
By May 14, 2022 01:01

The benefits of greater concentration

The long-held view that stock-based diversification is a good way to minimize risk in an actively managed fund has led to an increase in portfolios that may hold too many securities. Portfolios with 100 stocks, or more, can dilute the potency of individual stock positions, making it more difficult for managers to outperform their benchmarks as well as cheaper, passive investment vehicles. At Mutual Series, we believe a concentrated …

Franklin Templeton
By May 14, 2022 01:01

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