This piece is approved to use with clients.
When Diversification Fails: Reexamining Portfolio Construction Strategies Amid the Coronavirus Crisis
One of the most vexing problems in investment management is that diversification seems to disappear when investors need it the most. When markets were in panic mode in mid-March, correlations spiked as investors sold indiscriminately, and, in many cases, diversification once again failed both within individual strategies and in portfolios. Listen to senior T.