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Risk is Not Defined by the Crowd
Investors can achieve high benchmark performance with reduced risk by employing strategies such as put protection and diversified portfolios. Utilizing futures allows for full exposure to benchmarks while mitigating downside risks. Despite some fears about widespread adoption leading to diminished value, the reality is that most investors do not employ such strategies due to their inclination to conform with the crowd. This mindset creates opportunities for those willing to think independently and act on tailored solutions for their own or their clients' portfolios. The focus should remain on individual capabilities rather than the broader market tendencies, as risk perception often stems from fear of deviating from common practices.