Managing Investment Capacity
Capacity management is crucial and should be handled by the portfolio manager who understands the liquidity of their positions. A performance-based payment structure aligns incentives with client interests, ensuring risk is controlled. Additionally, separating beta from alpha allows clients to pay only for the potential of outperformance, while concentrated portfolios can enhance returns without unnecessary diversification.In this clip
From this podcast
Capital Allocators – Inside the Institutional Investment Industry
Peter Kraus - Widening the Aperture on Alpha (First Meeting, EP.14)
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