The way risk is managed in concentrated portfolios matters

Donald Huber | Franklin Templeton Investments | 21 August 2019 | 0.25 CE

The active investment management industry is in the throes of major upheaval. The rise of index funds and the failure of many traditional diversified active managers to consistently outperform their benchmarks has led to growing demand for more concentrated, actively managed portfolios. To generate alpha, a portfolio manager must take risk, but the tradit...