Post by AlternativeSoft

Three numbers that should make every allocator rethink their diversification strategy: 📊 0.82 — average equity-bond correlation during stress periods (vs 0.02 in normal markets) 📊 +340bps — annualised outperformance of factor-aware portfolios vs static 60/40 over five years 📊 −38% — reduction in maximum drawdown achievable through dynamic correlation management The world that made 60/40 work no longer exists. Rapid rate shifts, geopolitical shocks, and correlated sell-offs have broken the assumptions underlying traditional diversification. So what does genuine portfolio resilience look like? We've published a new piece walking through: ✔ Why traditional diversification fails at exactly the wrong moment ✔ The factor exposures hiding inside seemingly diversified portfolios ✔ How to build portfolios that lose less, recover faster, and compound more effectively Full article here 👇 https://lnkd.in/eGjx7scV #PortfolioConstruction #AlternativeInvestments #HedgeFunds #RiskManagement #Allocators Bridgewater Associates Ray Dalio Bloomberg MSCI Inc. J.P. Morgan Howard Marks Oaktree Capital Management, L.P.