RT Journal Article SR Electronic T1 The Market Portfolio Is Bigger Than You Think JF The Journal of Investing FD Institutional Investor Journals SP joi.2021.1.187 DO 10.3905/joi.2021.1.187 A1 Laurence B. Siegel YR 2021 UL https://pm-research.com/content/early/2021/06/14/joi.2021.1.187.abstract AB The true opportunity set and hypothetical benchmark for investors is, and always has been, the aggregate portfolio of every asset in the world. This portfolio is very diverse and complex. To control risk and make the investor’s job more manageable, most of these assets have been excluded from institutional portfolios, which have instead focused on public equities and bonds. The endowment model opens up the investment process to the true opportunity set and makes it possible to earn returns from sources that have traditionally been closed to both institutional and individual investors.TOPICS: Portfolio theory, portfolio construction, foundations & endowments, performance measurementKey Findings▪ The true world market wealth portfolio is much larger than the total capitalization of public stock and bond markets.▪ Active investors should consider the entire world market wealth portfolio, to the extent that it can be accessed, as their opportunity set.▪ Alternative investments are not new and have been used by endowments and other investors over a long period of historical time.