- June 1, 2008: Vol. 2, Number 6

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Mix and Match

by Drew Campbell

The cliché “don’t put all your eggs in one basket” is a tenet of good investment strategy that most investors follow. Those who don’t not only risk one or two investments dragging down the overall performance of their portfolio, but they also make the mistake of passing up opportunities by investing too narrowly. Commercial real estate is a case in point. It has been one of the top performing asset classes of the past five years and many investors who included property in their portfolios have been rewarded with double-digit returns. Building a well-diversified portfolio, however, is not a one-size-fits-all proposition.

“Diversification can happen in many ways — through liquidity, by investment style, by manager, by country/region and by sector,” says Erwin Stouthamer, managing director with Composition Capital Partners, an Amsterdam-based fund of funds manager. “Investor

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