The Right Way to View Asset Allocation

  • Michael Bunn
  • Zack Campbell
Chapter

Abstract

One myth that came about in the late ‘80s and early ‘90s is that asset allocation is responsible for 90% of your return. The study used to “prove” this did not say so nor did its authors. This was a misunderstanding of the work and was pushed by index fund sellers and asset allocation study providers. Among the flaws of the study: many of the universities in the study used the same managers, and when the managers in an asset class were of different names their correlation and R2 were close. Asset classes were similar. About the only axis on which there could be difference was asset allocation, and it wasn’t much.

Keywords

Board Member Private Equity Asset Allocation Asset Class Venture Capital Fund 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Michael Bunn 2015

Authors and Affiliations

  • Michael Bunn
    • 1
  • Zack Campbell
    • 1
  1. 1.COUS

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