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Multi-Cycle Portfolio Construction

13 minPRO
5/6

Key Takeaways

  • Vintage-year diversification smooths returns by ensuring not all capital is deployed at cycle peaks.
  • Geographic, property-type, and strategy diversification reduce concentration risk.
  • Consistent annual investing outperforms attempting to time cycle entries perfectly.
  • A 20-year consistent investor achieved 11.2% CAGR despite buying at both peaks and troughs.
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Test Your Knowledge

1.What is the primary goal of multi-cycle portfolio construction?

2.Which diversification layer is most important for multi-cycle resilience?

3.How should leverage policy change across a multi-cycle portfolio?