Institutions betting on 'core satellite on steroids'

The notion of core-satellite investing seems to be regaining some of its old popularity, according to Pensions & Investments. More institutions, ever mindful of costs and ever in need of enhanced returns, are seeking to invest in funds that offer a core portfolio, essentially a passive-type product, coupled with various satellite investments in highly concentrated equity portfolios of perhaps 15 to 20 stocks each. Obviously, this is in keeping with the trend toward separating alpha and beta. All too many funds charge alpha-premised fees for beta-like returns. Not a good deal for investors. The risks may rise a bit but institutions know what they are doing, and what they are paying for.  

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