Reducing the Risk of Black Swans — Larry Swedroe & Kevin Grogan

Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns with Less Volatility

Extended Synopsis

In this expanded and updated edition of Reducing the Risk of Black Swans, renowned investment experts Larry E. Swedroe and Kevin Grogan revisit their groundbreaking strategies for building highly efficient portfolios. Reflecting an evolving financial landscape and the latest advancements in evidence-based investing, the authors reaffirm that capturing returns with less risk does not require abandoning scientific models. Instead, it relies on refining those models to suit current market conditions. Swedroe and Grogan trace the evolution of asset pricing models and explore the academic foundations of modern financial theory, providing a clear, data-driven blueprint for navigating uncertainty.

This comprehensive roadmap details how to construct portfolios that deliver superior returns without exposing investors to excessive risk. By utilizing factor-based investing—incorporating elements such as value, size, and momentum—and delving into a new section on alternative investments, the authors demonstrate how retail investors can access unique sources of return once exclusive to large financial institutions. Supported by rigorous historical data, performance metrics, and updated research, Reducing the Risk of Black Swans empowers investors to optimize their asset allocation, leverage compound growth, and confidently mitigate the devastating impacts of catastrophic market events.

Reader Targeting

• Retail investors seeking to build resilient, long-term portfolios that weather market volatility.
• Financial professionals and advisors looking for rigorous, evidence-based investing methodologies to implement for their clients.
• Readers interested in risk management, asset allocation, and alternative investment strategies outside of traditional stocks and bonds.

Author Biography

Larry Swedroe and Kevin Grogan are distinguished investment experts and advocates for evidence-based financial planning. With a firm reliance on empirical research and rigorous data analysis, they have dedicated their careers to helping both institutional and individual investors navigate complex markets. Through their extensive work in portfolio management, they continue to challenge traditional financial paradigms and promote scientific methodologies to optimize investment returns while strictly managing risk.

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