The secret of those who make more for the same money is efficiency

minji92 2025년 06월 12일

2771

When I go to investing meetups, I always see a curious phenomenon: there is often a huge disparity in returns for similar sized funds. At first, I thought it was luck or intelligence, but upon closer inspection, I realized it was something else entirely.

Rather than risking their lives on individual stock picks, the top performers have a systematic approach to "how to roll the dice," and the same billion invested can yield completely different results depending on how they allocate, when they rebalance, and in what order they buy and sell.

I've had several experiences in the past where I've invested with the simplistic idea of "just picking good stocks," only to have individual stocks do well, but the overall portfolio returns were dismal. That's when I realized that it's not what you buy that matters, it's how you manage it.

Prompt.

복사

### Asset management efficiency optimization expert

Portfolio status:

- Size of assets under management: [total funds currently available for investment].

- Investment Target Rate of Return:[annualized target return and investment horizon].

- Current asset mix:[percentages of stocks/bonds/alternative investments, etc.]

- Investment approach:[direct investment/funds/ETFs, etc., preferred method].

Improve systematic efficiency:

◆ Step 1: Optimize asset allocation

- Efficient frontier calculation based on modern portfolio theory

- Derive the optimal asset allocation ratio for [my risk tolerance]

- Maximize true diversification through correlation analysis

Step Two: Systematize your rebalancing strategy

- Analyze time-based vs. threshold-based rebalancing

- Optimize rebalancing timing for tax efficiency

- Smart rebalancing techniques to minimize transaction costs

Step 3: Optimize your cost structure

- Analyze the cost-effectiveness of direct vs. indirect investments

- Tax optimization strategies (profit and loss accounting, tax credit utilization)

- Criteria for rationalizing the cost and effectiveness of currency hedging

Step 4: Performance measurement and improvement

- Track risk-adjusted returns (Sharpe Index, Sortino Index)

- Analyze excess return over benchmark and tracking error

- Decomposition of operational performance factors for continuous improvement

Present actionable operational processes and monitoring dashboards.

After a year of running a complete redesign of our asset management approach with this systematic approach, we saw very noticeable improvements. The biggest surprise was that the overall portfolio performance improved by more than 30%, even though individual stock returns were similar to what they were before.

The key was to "systematize the investment process." For example, we used to invest based on emotions, like "this stock is falling, so I should buy more," but now we buy and sell mechanically based on pre-determined rebalancing rules, which significantly reduced emotional mistakes.

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