SAXO BANK
Hedge Fund Consistency Index, Hedge Funds Research
Hedge Fund Consistency Index  
Midwest Office:
641-472-7373 Ext.112
News Books Scholarly Definitions


FREE ACCESS!
Subscribe for
Free Access
to over 4000+ pages of Profiles and Top 20 Rankings. No obligation ever.

User Name:

Password:




Diversification Related News
 in chronological order

 See also: Diversification Related Books, Diversification Related Scholarly Papers, or Diversification Home Page.

Table of Contents:
 

Arab world offers unique diversification benefits

June 30, 2006
From Citywire:
The Middle East and North Africa (Mena) does not get the best press. Mention the region to the man on the street and he is likely to immediately think of bloody political conflict.

Given the region is blessed with an abundance of natural resources and has a thriving consumer society, it seems wrong the region has been neglected, especially when one considers the rapid rise of the Bric nations (Brazil, Russia, India and China).

Source                                                                                                 ▲ top
 

Investors seek diversification through funds

June 26, 2006
From Easier.com:
The majority of investors invest in funds to achieve a diversified portfolio (63 per cent), according to research from Barclays Stockbrokers. One in six (16 per cent) use funds because an expert manages their money and one in ten (10 per cent) because they believe it is easier than trading shares. Just over one in ten (11 per cent) invest in funds simply because they believe they generate good returns.

Chris Stevenson, Associate Director, Funds, at Barclays Stockbrokers says: "In current market conditions it is encouraging that the priority for investors is diversification as this is key to generating good returns and ensuring their portfolios weather market storms. The security that comes with knowing a professional is managing their money is obviously also a priority for funds investors and is likely to continue to be so. Funds are a great way for the more cautious investor to access a broad range of markets and sectors to suit their investment objectives."

 Source                                                                                                 ▲ top
 

Growth and diversification

May 9, 2006
From WhatInvestment.co.uk:
The fund, due to be launched in early June, follows strong demand for multi-asset funds during a period that has been the most volatile and turbulent witnessed by managers in many years.

The launch will be the second multi-manager multi-asset fund to be offered to investors by Credit Suisse and will be a natural extension to the existing multi-manager range.

 Source                                                                                                 ▲ top
 

Make diversification the key to adding funds to your holdings

May 8, 2006
From MarketWatch:
Karin Anderson, mutual fund analyst at Morningstar, says investors need to choose funds as much for the way they diversify a portfolio as for past results or their promise for the future. In a radio interview, Anderson said that investors should not just be looking for buy recommendations, but should be choosy to own funds that do not have significant overlap, keeping the number of holdings in a portfolio down and making the money easier to manage.

 Source                                                                                                 ▲ top
 

Schroders opens up Diversified Growth fund strategy

April 24, 2006
From FTAdviser.com:
The new Diversified Target Return fund is an actively managed fund of funds, which will take a multi-asset growth approach, in a bid to provide stable returns even during volatile markets.

It will be managed by Johanna Kyrklund, head of the UK multi-asset team at Schroders, and co-manager of the institutional vehicle, who will aim to generate equity-like returns, but with a lower level of risk.

 Source                                                                                                 ▲ top
 

Craig Israelsen: Commodities Provide Good Diversification

April 23, 2006
From Seeking Alpha:
There's a new study out by Professor Craig Israelsen at BYU that provides more good news about commodities as an asset class.

As a number of other reports have also done in recent years, it dismisses the notion that commodities should be viewed as some sort of a "No Go Zone" for individual investors. Instead, in this report, commodities are shown to provide good diversification for typical investment portfolios while boosting overall returns.

 Source                                                                                                 ▲ top
 

4 ways to ace falling markets

April 14, 2006
From Rediff:
Investing in rising equity markets is always easier than investing in falling markets. Since a rising tide lifts all boats, rising equity markets can make even mediocre investments appear like great investments. But when markets collapse like they did earlier this year, many of these 'great' investments suddenly start appearing like great mistakes. Nonetheless, there are lessons to be learnt from falling markets and we have a 4-step strategy on how you can ace falling markets.

In rising markets investors are usually exuberant and expect markets to continue in the same vein. This is when most investors make mistakes. Two of the more common investment mistakes are 1) investing mainly in equities (i.e. lack of diversification) and 2) add to existing equity investments which results in lop-sided asset allocation (i.e. perilously high allocation to equities).

Source                                                                                                 ▲ top
 

What Is Diversification Worth?

April 11, 2006
From Seeking Alpha:
The concept of diversification is often discussed, but I am increasingly of the opinion that many investors do not understand diversification at a deep level. This is unfortunate, because diversification is the one ‘free lunch’ in investing. Indeed, this was the genius of Harry Markowitz in showing that combining asset classes in a thoughtful way allowed investors to generate higher returns without increasing risk in their portfolios. On a practical basis, what does this mean for investors? How much more return can investors generate by being well diversified?

To explore this topic, I have used a variety of sources to estimate what I will call the diversification premium. The diversification premium is the additional return that investors can achieve by effectively diversifying their portfolios across a range of asset classes. Effective diversification requires something significantly more intelligent than just buying a bunch of funds or ETFs, but it is well worth the effort.

Source                                                                                                 ▲ top
 

Rediscovering diversification amid global turbulence
March 12, 2006
From AsianInvestor.net:
 Distributors are taking a harder look at investment products that offer broad diversification, or so says AllianceBernstein, which hopes to find an opening for target-return retirement products for Asia’s growing retail market.

Consumer and private banks in Asia are taking a harder look at investment products that offer broad diversification rather than chase a hot theme, says Ranji Nagaswami, New York-based chief investment officer at AllianceBernstein.

 Source                                                                                                 ▲ top
 

The Case Against Diversification and Holding Cash
March 10, 2006
From Seeking Alpha:
 Diversification, cash and AAA-rated instruments with exposure to Mortgage Backed Securities – If you’re deep into all three, these are three definite signs that it is time to let your advisor go. Many “professional” advisors today argue that diversification is a reason to stay fully invested through bear markets. After all, if your advisor had diversified your portfolio into a bunch of housing and financial stocks that are all sitting on 40% to 70% losses right now, he or she would probably tell you that the bottom is certain to be near and that the worst performers of your portfolio this year will be the best performers of your portfolio in the years to come. Well, here’s a news flash. The time to sell out of these stocks was 9 months ago, and if you’re still holding on, the odds are that you will be hurt even more.

 Source                                                                                                 ▲ top
 

Fixed income looks towards global diversification
March 4, 2006
From Global Pensions:
 Heather Dale examines how fixed income has fared through recent market events and how pension funds are now using this core asset class

Over the last six months, volatility in the markets has made investors nervous, at a time when pension funds are grappling with ever more complex investment decisions and stricter accounting standards.

Source                                                                                                 ▲ top
 

Diversification drives profits at HSBC: Fitch Ratings
March 3, 2006
From Investment Executive:
 The business diversification of HSBC Holdings plc is enabling it to deliver earnings despite the huge hit it’s taking in the US mortgage business, says Fitch Ratings.

HSBC announced today that underlying pre-tax profits were flat at US$23 billion in 2007, despite US$17 billion of loan impairment charges largely in HSBC Finance and US$2 billion of other writedowns and fair value adjustments mainly due to structured credit exposures. Earnings were inflated, however, by US$3 billion of fair value ‘gains’ on its own debt, it added.

 Source                                                                                                 ▲ top
 

Changes in the Dow: Big Headlines But Little Impact
February 11, 2006
From Yahoo! Finance:
 Changes only come to the Dow Jones Industrial Average every few years, so they're bound to make waves when they happen.

But at a time when diversification is widely considered the lynchpin of a successful portfolio the time also may be coming when a narrow look at 30 stocks that aren't even necessarily industrial in nature is increasingly irrelevant.

 Source                                                                                                 ▲ top
 

Finding the best route to diversification
February 8, 2006
From Global Pensions:
 Andrew Gibson argues well diversified multiple strategy funds of hedge funds are the best way for pension funds to access hedge funds in these turbulent times

Reactions to the problems across the financial sector have raised fears the hedge fund industry is about to experience a general meltdown, however, as Mark Twain once said: “Reports of my death are seriously exaggerated.”

Source                                                                                                 ▲ top
 

Beginner's Guide to Diversification
January 7, 2006
From TheStreet.com:
 Remember, when you're on safari, you've got to pay attention to the clues. Many beginning investors, unfortunately, get so dazzled by the glitter of the stock market that they lose sight of the trees in the midst of the jungle. We'd like to tell you what happened to one beginning investor -- and how to avoid repeating his mistake.

John, a 38-year-old accountant, decided to go into the investing jungle without a guide. He was good at crunching numbers at work, and if he applied that same skill to investing in the stock market, he'd have a chance to win big. After all, a lot of other professionals he knew had made a few bucks in the market.

Source                                                                                                 ▲ top
 

Investing Blasphemy: Don't Diversify
January 3, 2006
From Forbes:
 Paul Orfalea is fairly well known for being the hyperactive, dyslexic mind that turned office- and print-service shop Kinko's into a worldwide chain, eventually bought by FedEx (nyse: FDX - news - people ) in 2004. Now much of his time is spent working as an investment adviser heading West Coast Asset Management, based in Ventura, Calif. With his three West Coast colleagues, Lance Helfert, Atticus Lowe and Dean Zatkowsky, Paul has released The Entrepreneurial Investor, which takes a whack at teaching investment strategy.

The Entrepreneurial Investor is simple and at times so accessible it might seem to encourage investors who belong in index funds to take on too much risk by following the authors into the realm of the highly concentrated individual stock portfolio.

Source                                                                                                 ▲ top
 

'Don't diversify your portfolio too much'
December 25, 2006
From The Times of India:
 Neerav Verma, a 30-year-old investor is extremely serious about money. He regularly invests in equity schemes of mutual funds to make money from the stock market. He tracks new fund offers regularly and invests in the new issues without fail. He closely follows the performance of various mutual fund schemes and makes it a point to invest at least a small amount in the best performing scheme every month. In short, he walks and breathes mutual funds. And, hold your breath, his portfolio of mutual fund comprises 45 schemes, ranging from diversified equity schemes to infrastructure to banking.

How does he keep track of the performance of the schemes he has in his portfolio? "I nearly spent around two hours daily to keep track of them. If I find any of the schemes not performing well, I take prompt action. I sell them and get into a scheme which is performing well at the moment," he says. Doesn't he know he is committing many sins, which are considered sure ways to lose money in the market? One, he is far too diversified to be effective. Two, he is also constantly changing his portfolio based on short term trends. "But if I don't put money in the best performing scheme, how will I make money. There is no point in keeping money in a badly performing scheme," argues Verma.

Source                                                                                                 ▲ top
 

Dial D for diversification
December 23, 2006
From The Economic Times:
 Check out the speed. After charting out a high-octane growth curve, India Inc is changing gears and getting into a diversification mode, spotting the booming business domains. In fact, in an aggressive hunt for growth areas, many Indian companies of various sizes and scales have made a serious attempt to join the bandwagon and branch out to new businesses.

The hot and happening sectors are a few in numbers. Backed by encouraging government policies and strong future outlook, sectors such as telecom, power, roads, financial services, retail and education have taken a lead in India’s new chapter on diversification. Already, the companies with sound track records in raising capital both from equity and debt markets, have spotted those buzzing sectors which in turn may help their top-line to grow on a sustained basis at least for a few more years.

Source                                                                                                 ▲ top
 

Latest exchange-traded funds offer great new ways to diversify
December 20, 2006
From HeraldTribune.com:
 The hype is finally justified.

Wall Street has rolled out some 600 exchange-traded index funds, those stock-market-listed products that have exploded in popularity. Many, however, merely mimic existing mutual funds -- or are so narrowly focused that they're of little use to prudent investors.

 Source                                                                                                 ▲ top
 

Diversification is key for investors in '08, analysts say
December 17, 2006
From The South Florida Sun-Sentinel:
 Each year, we ask a panel of investment experts that question.

Amid relentless volatility, all passed the test in 2007. The recommended portfolio mix from every participant 12 months ago produced an increase this year.

 Source                                                                                                 ▲