How Modern Is Your Portfolio Theory? After 58 Years, is there Another Way to Conquer the Efficient Frontier? Modern Portfolio Theory (MPT) and its Efficient Frontier have served as the foundation of long-term investment management since it was first developed in 1952. However, today’s global marketplace has become an increasingly complicated and rapidly changing environment that has significantly challenged this school of investing (especially within the last decade). With the introduction of sophisticated funds that help the masses harness the power of institutional managers and alternative asset classes and strategies, today there are more options than ever to help amplify the (new) Efficient Frontier. In this article, we examine some of the principles and assumptions of MPT and how numerous sophisticated investors are managing assets to adapt to today’s marketplace.
After 58 Years, is there Another Way to Conquer the Efficient Frontier?
Modern Portfolio Theory (MPT) and its Efficient Frontier have served as the foundation of long-term investment management since it was first developed in 1952. However, today’s global marketplace has become an increasingly complicated and rapidly changing environment that has significantly challenged this school of investing (especially within the last decade). With the introduction of sophisticated funds that help the masses harness the power of institutional managers and alternative asset classes and strategies, today there are more options than ever to help amplify the (new) Efficient Frontier. In this article, we examine some of the principles and assumptions of MPT and how numerous sophisticated investors are managing assets to adapt to today’s marketplace.
Modern Portfolio Theory (MPT) and its Efficient Frontier have served as the foundation of long-term investment management since it was first developed in 1952. However, today’s global marketplace has become an increasingly complicated and rapidly changing environment that has
significantly challenged this school of investing (especially within the last decade).
With the introduction of sophisticated funds that help the masses harness the power of institutional managers and alternative asset classes and strategies, today there are more options than ever to help amplify the (new) Efficient Frontier.
In this article, we examine some of the principles and assumptions of MPT and how numerous sophisticated investors are managing assets to adapt to today’s marketplace.