Reducing Risk – Absolute Return and the Pursuit of Better Diversification

Overview

Did you know that, for greater diversification, adding one asset can mean more than a thousand? In this article by Todd White and Kent Peterson of Columbia Management, readers will learn that correlation really matters, but, in today’s highly correlated investment landscape, finding the uncorrelated assets essential to effective diversification is a major challenge. By proactively managing for both risk and reward, absolute return funds are establishing their place alongside traditional allocations.