Guide to Smarter Portfolio Construction

Sherpa Funds Technology has over a decade of experience helping institutional fund managers unlock extra returns without taking additional risk through smarter portfolio construction. Our “Techniques for Smarter Portfolio Construction” shows how it works.

Most investment managers assume that portfolio returns are determined by asset selection and market timing. But the evidence tells a different story. In a typical benchmarked institutional portfolio, the way assets are combined – portfolio construction – can have as much or more impact on realised returns.

That means two managers holding the same assets can deliver very different outcomes, purely because of the techniques they use to build their portfolios. One maximizes returns from their research; the other leaves value on the table.

The good news? These “portfolio construction effects” are measurable, repeatable, and can be implemented without taking on additional risk. Even better, they don’t require changes to your systems, reporting, or technology. With the right process, managers can unlock incremental returns by making better use of the building blocks they already have.

Sherpa Funds Technology has distilled the key principles into a concise guide: “3 Techniques for Smarter Portfolio Construction.”

Inside, you’ll discover:

How portfolio construction drives returns in ways that aren’t always intuitive
Practical methods to capture additional performance from the same assets with no increase in risk
Why you don’t need new systems or technology to benefit from these insights