Portfolio Construction for Retail and Institutional

Six AI names are one position. Building clusters prevents the illusion of diversification that blows up in a single-factor drawdown.

Key takeaways

• Group by the factor that actually drives returns.
• Cap total exposure per cluster, not per ticker.
• Review cluster weights after every large move.

Decide how much of your total risk goes to equities, crypto and cash before you pick a single name.

Key takeaways

• Risk contribution, not capital allocation, is the real constraint.
• High-volatility sleeves need proportionally smaller notional.
• Cash is a position with an expected return and a volatility of zero.

Calendar plus threshold beats pure optimisation. Simplicity is what makes a rule survive a drawdown.

Key takeaways

• Quarterly review with a 25% drift trigger.
• Rebalance into strength, never into a broken thesis.
• Write the rule down before you need it.