Chapters
Chapters
Optional deep dive D4
Resilience and portfolio families (optional)
What does a construction change in your exposure, payment obligations and ongoing work? Follow those differences from a simple mix to contracts operated inside a fund.
Next lessonCompare portfolio families by the job they do
—All materials read
- Compare portfolio families by the job they doCompare organising rules and maintenance; see both parts of a share/bond mix lose together.Read
A loss boundary needs stronger premises than a family name.
- What a barbell does and does not protectFind the premises behind a nominal floor and the obligations or replenishment that can breach it.Read
Futures show why a small deposit can carry larger obligations.
- Index exposure through cash-backed futuresFollow one settled loss, an internal margin transfer and a separate missed cash deadline.Read
Next, distinguish how much money is assigned from how much risk it contributes.
- What risk parity balancesCompare money weights with variance contributions before considering larger exposure.Read
Balancing risk and adding exposure to the same capital are separate choices.
- What return stacking adds to the same capitalSeparate owned assets from futures notional, then trace losses back to the same capital.Read
A contract can also serve a mandate that changes direction.
- What managed futures funds are trying to doFollow a price reversal through long and short positions without treating a crisis as insurance.Read
Finally, identify which obligations a fund takes on and which remain yours.
- Owning a fund instead of running the constructionLocate the fund’s contract obligations and the separate responsibilities of its unit holder.Read
A simpler portfolio remains a valid choice. The next optional section examines other assets through the claims, cash flows and access they provide.
Optional deep dive: Assets outside the core (optional)