Low number of stocks can create lower systematic risk

It's not per se needed to have a huge number of stocks in a portfolio to reduce the systematic risks. With having a low number of low correlated stocks it's according to Filip Weintraub from Skagen Funds also possible to create a lower systematic risk.

Weintraub mentions the classical risk classifications are not optimal. "Investors should mostly focus on the nominal downside risk instead of volatility" according to Weintraub.

Filip Weintraub (Skagen): low number of stocks can create low systematic risk

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