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I’ve spent nearly 30 years as a professional investor in private equity, in other words far removed from the highly quantitative and top down approach of asset allocation/ portfolio construction. I found the book to be very technical, and often incomprehensible were it not for the useful chapter summaries which condensed the key concepts and takeaways into ‘English’. My key takeaway from reading this is that like many aspects of investing and despite the immense quantitative firepower and academic effort dedicated to this space over many decades, subjective judgement and a good dose of luck remain a key factor to success. Readers with strong quantitative finance background or CFA will benefit most from this book.
Full disclosure: I did not finish this book. That is not to say I didn't try. I gave it a handful of chances. The first few chapters were fine, dare I say, even enjoyable. As the book progresses, it starts to sound like a sales pitch for investing with T. Rowe Price. With all due respect to the author, I felt like a lot of the information provided was complicated and/or missing the forest for the trees. This is coming from a finance professional.
Important subject as the asset allocator today have more tools then ever to construct a diversified portfolio. Efficiency and understanding of how instruments as well as markets function is crucial. Beyond Diversification takes us on the right path.
An extraordinary masterclass on the main pillars of asset allocation and portfolio construction. Quality content, rigorous research, very illustrative explanations and a witty style makes Beyond Diversification an immensely enjoyable and accretive book to read. Outstanding work!