Pragmatism in Practice
The Pragmatic Portfolio was created to exist within the narrow optima of the global portfolio design space. The strategy seeks to deliver the highest aggregate utility when measured upon the three metrics of simplicity, risk-adjusted return, and diversification. To this end, the approach consists of the following. Identify the major asset classes that exist during a given investor's economic epoch (including cash), and divide their capital equally amongst these assets. More succinctly, the approach is epitomized by the following mathematical statement.
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