Unique Portfolio as a Source of Diversification
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.
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