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Unique Portfolio as a Source of Diversification

Nov 15, 2021

Redacción Mapfre

The investment industry has investors convinced that true portfolio diversification is achieved through exposure to a variety of asset classes. However, a differentiated stock picking approach can serve as another source of diversification. With one-fourth of its equity portfolio invested in the sports industry and 10 percent in public football clubs, stock picking represents a source of diversification for the Behavioral Fund of Spanish asset manager MAPFRE AM.

“We are really trying to find diversification and decorrelation with broader markets,” says Luis García Álvarez (pictured), the Portfolio Manager of the MAPFRE AM Behavioral Fund. “There are many funds in Europe that follow an investment philosophy similar to ours, but our portfolio is probably quite different from theirs,” he continues in an interview with HedgeNordic, a Stockholm-based financial publication.

To read the full interview click here:

https://hedgenordic.com/2021/11/unique-portfolio-as-a-source-of-diversification/

Records, risks, and reasons for caution (and optimism) in the markets

In the third quarter, U.S. equities extended their post liberation day advance, especially in the case of small caps.

How to invest with the stock market at maximums?

We are facing a high price scenario, in which questions for investors arise: Should one enter a market that is already “expensive,” or wait? Should you hold your investments, or is it time to sell? MAPFRE experts explain that being in a moment when stock markets are at record highs should not deter investment if we have a long-term outlook—the most suitable for retail investors—and good diversification.

Fed Highlights “High Prices” in Equities: Are We Facing a Bubble?

The U.S. Federal Reserve has dominated much of the economic and financial discussion in recent weeks, largely due to the debate over possible rate cuts, which were confirmed last week. On Tuesday, Chair Jerome Powell again drew attention by referring in a speech to the “fairly high” prices in U.S. equities. With Wall Street at historic highs, the question arises whether we are dealing with an equity bubble.