As a professional investor, Paul is a platform Generalist. He takes pride in knowing and understanding what he does not know. He surrounds himself with industry experts who have executed successful programs in the past and are ready to do the hard work necessary to be successful in the world of hard asset management and investing.
The answer is the use of Modern Portfolio Theory (MPT) in the design and implementation of the portfolios. MPT won the Nobel Prize for Harry Markowitz in 1952. The use of MPT maximizes portfolio return for a given level of risk by carefully choosing the proportions of various asset classes within the portfolio. MPT used the efficient frontier, shown above, which allows advisors to select optimum asset classes for their clients.
On the chart above, Efficient Portfolio Frontier 2 is comprised of Stocks and Bonds only. You can see the risk (Standard Deviation) is much higher for the expected return. Efficient Portfolio Frontier 1 includes real estate and provides investors a higher return with less risk. From this chart you can see that inclusion of Direct Energy in a portfolio made of traditional assets and real estate can move you to Efficient Portfolio Frontier 3 providing even higher returns to investors, with less risk.
Custom Private Equity is a management group that completes indepth research into market needs. We create executable capital strategies and platforms to put our in-house research, knowledge and experience to work.
Get our exclusive private equity platform research immediately after entering your information below.