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THE 10% PORTFOLIOS
Since investors have different risk tolerances,
no one portfolio along the efficient frontier is right
for all investors. In order to track how changing market
conditions, valuations, and prospective returns affect
the composition of portfolios along the efficient
frontier, we report from time to time on the composition
of a benchmark portfolio with an expected return of ten
percent. Since individual investors and smaller
endowments typically do not have the ability to invest
in venture capital funds, we track the benchmark
portfolio with and without venture capital.ARTICLES
The 10% Portfolios, July 2008
With the high probability of a recession in the United
States and other developed economies, the Advisor
formulates a Ten Percent Portfolio factoring
in the likelihood of reduced equity market returns over
the near to mid term
View
Allocation Table
Tracking the Ten Percent
Portfolios: Meeting the Target, August 2008
In the period from 31 July to 31 December 2007, the Ten
Percent Portfolios exceeded the target ten percent
annual return. The portfolios also exceeded the target
in the period from January 1 through June 30, 2008. The
rather surprising results of the Ten Percent Portfolios
for the first half of 2008 during a time when equity
markets in the United States, Europe, and the emerging
markets produced losses of ten percent or more are a
tribute to the advantage of broad diversification.
Although a slower pace of economic growth throughout the
world (with likely contractions in the United States ,
the UK and parts of Europe ) is likely to depress all
capital market returns, diversification will continue to
be of benefit – even if not so heroically as over the
past eleven months.
View
Article The 10%
Portfolios, June 2007
The inaugural 10% portfolios were formulated in July
2007 on the basis of the Advisor’s June 2007 capital
market expectations. Both portfolios included relatively
large allocations to commodities.
View
Article
View allocation table
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West Hartford