A guide for IPPs and Funds on portfolio diversification
Do you know the difference between owning a portfolio and developing a portfolio view?
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Nobel-prize economist Harry Markowitz argued that diversification is the only free lunch in investing, which was our inspiration behind the title of this report.
But what did he mean by this? It’s a reference to a good diversification strategy’s primary benefit: the ability to increase your revenues without increasing your risks!
A well diversified portfolio can lead to numerous benefits, and the renewables industry appears to know that, in theory. What is missing though, is the ability to discover the hidden value of diversification through developing a portfolio view.
Our new guide, curated particularly to address the needs of Independent Power Producers (IPPs) and clean energy funds, dives into the details of how to quantify your diversification benefits, which could mean saving millions in unnecessary hedges. Better from simply a free lunch, right?
In this guide, you will learn:
Why the ability to quantify diversification benefits is an investor’s newest ally through applying the Modern Portfolio Theory (MPT) in a renewables portfolio
How correlations will reveal value in your portfolio you never knew existed
Key steps to reach a portfolio view, including the necessary pre-work data
Material lessons learned from a real-life case study comparing five portfolios across Europe
Ready for your free lunch? Download our guide, and enjoy the deep dive once again!