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Keeping it Simple on the Road | Ep.6: Endeavoring to Diversify

Keeping it Simple with Simplify Asset Management

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The Dynamics of Active Bond Management

There's alpha being added in the active bond management space, which is not given an equity. I think it's to keep your cash. Every active investor has to have cash to handle redemptions. That cash can stay in bonds in a bond fund. In equities, there's always this drag because they have their cash in cash,. Which is not in equity. It could theoretically work in both directions. But yes, that tends to be the case. And we've actually seen active managers take down their cash allocations.

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