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Jenny Johnson on Managing a Trillion-Dollar Firm

Masters in Business

CHAPTER

How Volatility and Concentration Affect Active Managers

Fixed income is now actually an asset class you want to be in. Volatility is good for active managers because it shows where you have skill. The day Tesla was added to the S&P 500, it became a much riskier investment based on volatility and concentration. But when you have volatility, that's when you start to see outperformance.

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