Gentry Wealth Winter 2012 : Page 4
Turns out ‘fat tails’ are much more common than people think ‘Fat tails’ are extreme market events—like the crash of 2008—that can rock your portfolio. This illustration shows they occur much more frequently than a normal distribution curve would suggest.(Notethedifferencebetweenthetheory—‘skinnytails’—andthereality—‘fattails’.) OurrigorousBetaPlus ™ investmentphilosophytakesthisfactintoaccount.Ourapproachis academically based, long-term and primarily passive, with some important exceptions. To learn more, contact Susan Dickson at 415.526.2900 or visit www.privateocean.com.