Delegated portfolio management and diversification |
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| Authors: | Michael Christensen Michael Vangsgaard Christensen Ken Gamskjaer |
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| Institution: | 1. Department of Economics and Business, Aarhus University, School of Business and Social Science, Aarhus V, Denmark;2. AROS Capital Partners ApS, Aarhus C, Denmark;3. Hemonto A/S, Aarhus C, Denmark |
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| Abstract: | This article analyses the potential diversification benefits available to high-net-worth investors utilizing multiple portfolio managers. We show that enlisting seven actively managed portfolios from multiple portfolio managers generate significant benefits in terms of risk reduction, and, interestingly, diversification benefits are shown to be larger for low-risk portfolios compared to high-risk portfolios. |
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| Keywords: | Delegated portfolio management portfolio management risk diversification |
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