The Wolf in Sheep’s Clothing: When Momentum Hides Inside a “Diversified” Portfolio
What if the problem in your portfolio is not that you own momentum, but that you own it without realizing it? Most investors think of diversification as a matter of arithmetic: more holdings, more funds, more managers. But a portfolio can hold dozens of names across several strategies and still be leaning on a single, fragile idea — that whatever has been going up will keep going up. When that idea is working, it feels like skill. When it stops, it can look a lot like risk nobody chose.