By Yves Smith, includes “We are featuring an important new article by Richard Ennis, the co-founder of the first professional investment consultancy, EnnisKrupp, and editor of the Financial Analysts Journal.” Paper abstract includes “Large institutional investors in the U.S. commonly diversify their portfolios among 8-12 asset classes. This approach typically involves using 100 or more investment managers at a cost of 1-2% of asset value annually. We refer to this as the Standard Model of Institutional Investment. It has failed to provide diversification benefits and proven to be a serious drag on performance.”
Read the full article on: Naked Capitalism