SOURCE: Peloton Wealth Strategists

Peloton Wealth Strategists Registered Investment Advisors

October 12, 2010 09:00 ET

Peloton Wealth Strategists Takes a Stand on Complex and Expensive Diversification Practices

White Paper Includes Recommendations on Effectively Diversifying Investments

INDIANAPOLIS, IN--(Marketwire - October 12, 2010) -  Peloton Wealth Strategists, a leading independent Registered Investment Advisor, today releases a white paper discussing the often overly complex and expensive practice of diversification. While the need to diversify investments is intuitive, naïve approaches to diversification are dangerous.

At its core, diversifying among several attractive investments is one important means of mitigating the potential negative effects from making a bad decision, while maintaining the positive impact of good decisions. However, mitigating risk by relying on vague concepts of eggs and separate baskets reduces investors' odds of meeting their future financial needs.

Effective investment diversification is more like math: it's governed by rules and relationships and it also requires consistent study and application.

"Diversification by some advisors has become a sort of 'Wizard of Oz' scenario, where a myriad of products and layers of management distract clients from the hefty fees associated with over-diversification," said Matthew Bradley, chief investment officer for Peloton Wealth Strategists. "At Peloton, we pride ourselves on independence, ethics and fundamental analysis, forming a unique investment strategy for each of our clients, with varying levels of diversification. The goal of this white paper is to help educate the market on this often over-complicated strategy and better explain how diversification can be achieved cost-effectively."

The white paper first describes the basic process of diversification by looking at fundamental characteristics of various types of investments. It then explores how the practice of diversification has been made unnecessarily complex and expensive to serve the ambitions of some financial advisors. Finally, the paper concludes with recommendations for how diversification can be practiced in an effective manner.

The full white paper is available on Peloton's website at

About Peloton Wealth Strategists
Founded in 1984, Peloton Wealth Strategists is an independent, fee-only Registered Investment Advisor with a rich tradition of highly individualized plans and personal service. We serve clients throughout the United States and internationally with minimum investment assets of $1.0 million. Independence, ethics and fundamental securities analysis are at the heart of everything we do. Throughout Peloton's 25 years in business, we have developed a process-oriented approach that balances the art and science of portfolio management. Peloton is not affiliated with a brokerage, insurance company or other securities firm, and our fully integrated approach to investment management provides the right structure for every client. For more information, go to

Contact Information

  • Media Contacts:
    Becky Polston, APR
    Synergy Marketing Group, Inc.
    317-205-9690 ext. 226