Date: Saturday, December 8, 2012
Topic: Is Modern Portfolio Theory Ruining Your Portfolio
Speaker: Scott Vincent, Portfolio Manager, Green River Asset Management, LLC
There is a flawed assumption underpinning Modern Portfolio Theory (MPT). The consensus view has been that a well-diversified, index-type portfolio will deliver superior returns and it is this belief that has underpinned the unfathomable flow of capital to index funds over the past decades. However, there is compelling evidence that a sub-set of active managers persistently outperform indexes, suggesting a result inconsistent to the consensus view.