Exact(3)
Active managers often have fewer stocks inside their funds as well, and that can create higher, more concentrated risks than index funds have.
Managers needed to have large businesses to justify the required information and compliance systems, and diverse ones to avoid concentrated risks that might scare cautious institutional investors like pension funds.
Rhoddy Swire, chairman of the Pantheon Group, which advises institutional clients about private equity funds, thinks this biased management against taking huge, concentrated risks that could clobber the share price if things went wrong.
Similar(55)
We concentrated risk by summing these POPs and isolated very low concentrations of multiple POPs in the lowest sextile of the sum.
You have concentrated risk in a couple of sectors.
They concentrated risk as much as they spread it, and amplified bad judgments.
"They have concentrated risk, but they derive comfort in that they know it so well," said Maureen K. Clancy, a managing director at Barclays Wealth.
Examples are plentiful, but consider first and foremost how market fundamentalists blocked attempts to expand regulatory coverage to the shadow banking sector, ignoring warnings about increasingly concentrated risk while reducing the level of risk oversight.
Currently, bank-held federal-agency securities and debt amount to one-third of total bank capital a highly concentrated risk.Fannie and Freddie may have fuelled an unsustainable credit bubble.
Likewise, these global influences have also concentrated risk in both scale and complexity.
This might concentrate risk.
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