Improving Investment Returns: Manager Sizing With Active Risk
Overview
Monitoring concentration in investment managers is an important component of portfolio risk management. While portfolio-level analysis on liquidity, beta, and volatility are frequently monitored, a minority of investment teams use active risk to size managers. By considering the return profile of a manager along with its size in the portfolio, active risk provides additional insight to risk management decisions, helps build better portfolios, and contributes to better governance.
Advisor Thinking
![](/sites/default/files/knowledge_center/images/Improving%20Investment%20Returns%20Manager%20Sizing%20With%20Active%20Risk.jpg)