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SuperDiversification works by spreading risk far and wide.

Managing your portfolio

SuperDiversification: How it works

To the conventional asset mix, SuperD adds a set of asset classes and subclasses (SuperDiversifiers) which themselves have histories of solid performance, but tend to move out-of-sync with conventional assets, and with each other.

This out-of-sync movement, technically termed low correlation, makes the portfolio’s growth less volatile over time. Portfolio risk is reduced while return potential remains substantial.

The SuperD portfolio is assembled entirely of mutual funds, closed-end funds (CEFs), and exchange-traded funds (ETFs), with a few strategic individual issues to complete the diversification.

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A generation ago, the typical portfolio was allocated to investments in the three conventional asset classes — US Stock / Bond / Cash — the so-called Conventional Asset Allocation (CAA) model...

A generation ago, the typical portfolio was allocated to investments in the three conventional asset classes — US Stock / Bond / Cash — the so-called Conventional Asset Allocation (CAA) model...

Even today, too many portfolios are weighed down by the traditional stocks/bonds/cash array…

A generation ago, the typical portfolio was allocated to investments in the three conventional asset classes — US Stock / Bond / Cash — the so-called Conventional Asset Allocation (CAA) model...

Even today, too many portfolios are weighed down by the traditional stocks/bonds/cash array…


SuperD goes beyond these three asset classes — to funds that invest in four additional asset classes that have proven to offer solid returns and to diversify portfolio risk…

SuperD goes beyond these three asset classes — to funds that invest in four additional asset classes that have proven to offer solid returns and to diversify portfolio risk…

SuperD goes beyond these three asset classes — to funds that invest in four additional asset classes that have proven to offer solid returns and to diversify portfolio risk…

— US Small Stock

SuperD goes beyond these three asset classes — to funds that invest in four additional asset classes that have proven to offer solid returns and to diversify portfolio risk…

— US Small Stock

— Foreign Stock

SuperD goes beyond these three asset classes — to funds that invest in four additional asset classes that have proven to offer solid returns and to diversify portfolio risk…

— US Small Stock

— Foreign Stock

— Real Estate

SuperD goes beyond these three asset classes — to funds that invest in four additional asset classes that have proven to offer solid returns and to diversify portfolio risk…

— US Small Stock

— Foreign Stock

— Real Estate

— Real Asset

For further risk reduction, SuperD mines the three conventional asset classes…

For further risk reduction, SuperD mines the three conventional asset classes…

US Stock — SuperD balances growth and value stocks, and adds medium-size (mid-cap) companies for further diversification…

For further risk reduction, SuperD mines the three conventional asset classes…

Bond — SuperD supplements the CAA model’s focus on high-grade bonds with a number of valuable bond subclasses which diversify credit and interest-rate exposure…

For further risk reduction, SuperD mines the three conventional asset classes…

SuperCash — SuperD uses an allocation called SuperCash, designed to provide a higher long-term return than is normally earned by the CAA model’s Cash allocation, but with low risk.

To do this, SuperCash allocates to a diversified set of alternative mutual funds that engage in low-volatility arbitrage operations…

The SuperD model shown in this demonstration — SDP1 — spreads portfolio risk far and wide, diversifying among up to seven asset classes, as well as diversifying within each asset class to add another layer of risk reduction.

SuperD is designed to provide to the individual investor the kind of broad, scientific diversification practiced by college endowments and other major institutions.

SDP1 — demonstrated here — is the more conservative of Seasonal’s two SuperD models.

SDP2 — the moderate portfolio — contains no SuperCash, but allocates more heavily to the other six asset classes.