Several contributions in the literature argue that a significant in-sample risk reduction can be obtained by investing in a relatively small number of assets in an investment universe. Furthermore, selecting small portfolios seems to yield good out-of-sample performances in practice. This analysis provides further evidence that an appropriate preselection of the assets in a market can lead to an improvement in portfolio performance.
SIMILAR POSTS
3 November 2023
Unlocking new opportunities for SME lending in the GCC
Although the current numbers of SME employees in the GCC may be far below global averages, the ambition is not. [...]
11 October 2023
The role of Capital Markets in supporting SMEs funding in the LAC region
Wiserfunding's most recent blog post discusses our founders most recent study, sponsored by the Inter-American Development Bank, on how capital [...]
4 October 2023
Can capital markets play a vital role in supporting SME financing?
Wiserfunding's most recent blog post discusses the benefits of increasing support for SME funding through capital markets. In the wake [...]
