We see over-diversification as a common mistake and do not subscribe to the theory that one needs to be invested in all asset classes, regions, and strategies at any given time. CAM’s team adds significant value by employing an opportunistic approach to asset allocation, avoiding areas where the risk/reward profile is subpar, while actively finding solutions to gain exposure to the ones that are most promising.
We relish our advantage of being able to pursue unconstrained strategies that allocate capital based on an independent assessment of value and risk across structures and geographies, without the limitations of narrowly defined benchmarks
Differentiated Asset Allocation Framework
A traditional asset allocation framework, which looks at a portfolio through the simple prism of region and asset class, is outdated and containing little valuable information regarding the portfolio’s true diversification and level of risk.
CAM has developed a differentiated framework which incorporates several new dimensions such as time horizon, correlation to broader asset classes, and expected volatility. The aim is to build portfolios that are well-balanced, offer true diversification to market factors, and exhibit measured levels of risk through the entire investment cycle including deep downturns.