(Featuring Brian Biggs, CFA, Research Director, Grosvenor Americas, and Madeleine Roberts, Research Analyst, Grosvenor Americas)
Portfolio diversification is one of the most fundamental concepts in investing. Diversification is a useful risk management tool employed to construct a portfolio in such a way that an investor is not overly exposed to any asset or risk.
https://www.afire.org/podcast/city-vs-property/
How can real estate investors think about constructing a diversified portfolio in an efficient and cost-effective manner? Investors do not necessarily need to spread themselves thin in order to thrive in portfolio diversification.
Brian Biggs, CFA, Research Director of Grosvenor Americas, and Madeleine Roberts, Research Analyst of Grosvenor Americas, talk about how the city lens is a powerful tool for diversified portfolio construction. By selecting a relatively small set of cities based on their long-run total returns relationships with one another, investors can build a portfolio that offers relative stability in uncertain times.