CIO CORNER
Tortoise versus hare – which portfolio gets you to the finish line?
A foundation portfolio is slow and steady, much like a tortoise. An opportunistic approach aims to outperform, like a hare.
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AT a very high level, there are two styles of investing. The first is to focus on asset allocation, or what we call a foundation portfolio. The second is to try to identify short-term market opportunities or anomalies.
The first is slow and steady. The second, highly dynamic. But is one better than the other?
Our contention is while the foundation portfolio is slow and steady, much like a tortoise, it is more likely to get an investor to the destination for two reasons.
