Global equity markets have become increasingly concentrated around mega-cap technology and the rapidly expanding AI ecosystem. But the risk extends beyond the obvious names. A portfolio spread across different companies, sectors and regions can still carry significant exposure to the same underlying economic theme.
The more interesting question, then, is not simply whether concentration exists – but what should investors do about it?
In Part 3 of Mentenova’s Concentration Risk Series, our Manager Research Team examines four very different ways global equity managers are navigating concentration in the MSCI ACWI – from deliberately stepping away from crowded areas of the market to selectively participating in them. We explore why these differing philosophies can each have their moment, and why building resilience may lie not in choosing the “right” view, but in intelligently combining them.
Read the full article to explore how Mentenova approaches concentration risk in global equities – and why manager dispersion can be a feature, not a flaw.
