jmorace

Risk Management and Concentrated Positions

Another great piece.

It appears so many of these investment firms were not really using the tools available for modern portfolio management. Of course, the two that seem to be standing out for using them correctly are Pimco and GoldmanSachs. Gs is forever talking about value at risk and pimco seems to have a strong investment thesis for what's going on.

Be that as it may, I've been following your articles and theory for some time now. You've really been right on and laser like in your articles. Congrats.

What would be helpful to me at this point, as an individual investor, is some insight into a few basics. Perhaps you could point me in the right direction to find some information on them. For instance, how is it best to enter into and adjust a modeled portfolio? Does one leg into this? Or just jump in 100 percent? Perhaps average in over the course of 3 months or something else? Also, what are the options in terms of rebalancing the portfolio allocations? Once a year? Every quarter? How does this work?

Finally, some insight into the tax consequences of Tips held in taxable accounts would be great.

Thanks again for the great work,

jmorace