Reported 4 months ago
In defiance of Wall Street's tradition of diversification, stock pickers are increasingly betting on a smaller number of lucrative companies across America to achieve better returns. By focusing on fewer carefully chosen equities, these investors aim to outperform in a market dominated by a limited number of mega-cap firms. While this high-risk strategy can boost the odds of beating benchmarks, it also intensifies the consequences of being wrong. Despite research showing the challenges of consistently identifying alpha-generating winners, some fund managers are demonstrating that a concentrated portfolio approach can deliver higher returns when implemented thoughtfully.
Source: YAHOO