Does Rebalancing Still Make Sense?

In a market dominated by a handful of stocks, is rebalancing a diversified portfolio still a viable path for institutional investors?

In our latest paper, we make the case:

  1. How U.S. stocks are demonstrating capital concentration risk – and what might come next
  2. Why capital distribution is actually fairly stable over decades, despite leaders coming and going
  3. What is the excess growth rate, and how does it quantify potential added return from diversification

While short-term headwinds exist, we believe that active diversification and systematic rebalancing remains a consistent source of alpha over the long term.

Does Rebalancing Still Make Sense_LP


Reacquaint Yourself With Rebalancing