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THE POWER OF DIVERSIFICATION IN REIMAGINING THE 60-40 PORTFOLIO

4 MIN WATCH

October 11, 2023

The power of diversification in reimagining the 60-40 portfolio

Bill Kelly, CAIA CEO & President, CAIA Association
Private Assets

Key takeaways

  • Bill Kelly of CAIA argues that investors should rethink traditional 60/40 models by “widening the aperture” on what is included in each of those buckets, incorporating private markets opportunities for potentially better risk management and returns.
  • Building diversification is essential for investors, regardless of market conditions. The potential long-term benefits of diversification typically outweigh short-term concerns.
  • That said, vintage year - the year in which you invest in a fund - matters in private equity investments, as market fluctuations create different entry opportunities at different points of the economic cycle.

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