Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

"2 private market investor lessons from Tory Reiss at Equi" Tory Reiss #shorts

Name: "2 private market investor lessons from Tory Reiss at Equi" Tory Reiss #shorts
Uploaded: 2023-04-29T15:00:30+00:00
Duration: 58 s
Channel: Bob Fraser
Description: In this short video, Tory Reiss shares two key lessons for private‑market investors. First, she stresses that diversification is the only "free lunch" in…

29 Apr 2023 · 1 min

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In this short video, Tory Reiss shares two key lessons for private‑market investors. First, she stresses that diversification is the only "free lunch" in investing, invoking the Markowitz modern portfolio theory framework. Second, she emphasizes that asset allocation is paramount: investors should deliberately decide which portion of their portfolio seeks high returns and can tolerate higher volatility, while the bulk should be placed in slow‑and‑steady, low‑risk strategies to protect capital. The slide she references illustrates this balance, warning against trying to swing for the fences with every manager and instead advocating a majority of the portfolio be allocated to stable, low‑risk assets.

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I think there's lessons in this for any private market investor, whether you're doing liquids like we are, or you're thinking about other parts of your portfolio. One of them is diversification's the only free lunch, and that's Markowitz. And then there's another one, which is around asset allocation is everything. So when you think at a portfolio level, know where am I looking to get high returns in my portfolio? Where am I comfortable going for slow and steady, low risk? Things that just really drive my portfolio overall and being able to get a balance between those high upside and maybe like you're okay with a little bit higher volatility in part of your portfolio, but then you want to be safe with a larger portion of your portfolio so that you're not losing the money you've worked so hard to create. That's something that I think this slide illustrates really well, where we're not looking to swing for the fences with every manager or strategy. The majority of the portfolio are nice, slow and steady strategies.