In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough describes the risks associated with highly-concentrated portfolios, and how to mitigate them via a ‘Go Anywhere’ investing strategy.
“Don’t sit there and wear the anxiety associated with concentration risk. This is why we put a maximum level on every asset allocation.”
"For a long time people said ‘Oh that’s too active.’ That’s B.S. ‘Too active’ meant you were going to pay too many transaction costs; now it’s all free. If you could deliberately study a fully-allocated ‘Go Anywhere’ asset allocation process, it’s rare that you need to actually raise cash, Quad 4 notwithstanding."
