Real diversification is return streams that disagree, not more names.
The gift here is not value, and it is not momentum. It is that the two almost never have a bad year at the same time.
01
Diversify the return stream, not just the stock count. Fifty names that rise and fall on the same days are one bet wearing fifty jerseys. Two strategies that lean opposite are genuinely two.
02
The blend clears the stronger factor because the parts disagree. Value carries the stretch where momentum stalls, then they swap. Their bad patches do not overlap.
03
Most diversifiers quit in a crisis, correlations rush toward one exactly when you need them apart. Value and momentum lean the other way by construction, not by mood. That is the sturdier kind of disagreement.
You can spend years hunting the one factor that wins. The quieter edge is refusing to choose. Hold two strategies that disagree, and the disagreement hands you a smoother line than either could alone.
See how return streams combine, not just stack up.
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