The most fundamental level of diversification is security diversification. Here, the risk is reduced by increasing the number of different stocks in the portfolio. The big question here is how many stocks you should own to be properly diversified. Credit focused asset manager, ExtantCapital, has received a $200 million cornerstone investment from New Holland Capital, marking the official launch of the hedge fund. Investing in today’s financial landscape can be both thrilling and intimidating. While thepotential for capital appreciation is a significant allure, the risks associated with market fluctuations cannot be ignored. Ryan Foster, a former Millennium and Soros investor, launches ExtantCapital, a new credit hedge fund with $200 million from New Holland Capital. Municipal bonds are also potentially appealing. As a predominately high-quality asset class with relatively high yield potential, taxable municipals may help boost portfolio returns and improve overall portfolio efficiency through credit resiliency and portfolio diversification. Diversification has multiple of benefits. Primarily, reduction in risk, exposure to higher returns due to diversified asset class and investors find it attractive to diversify their investments as they get involved in the process of calculating their investments. Shifting fixed income landscape, focus on sector diversification. Within fixed income, we are focused on current income and managing duration exposures around what may be a wide range for long-term interest rates.
