Most portfolios have a good amount of “bottom-up” diversification, according to William Blair’s Brian Singer, but it’s not enough. Instead, investors should ensure their portfolios have “top-down” diversification to complement their existing holdings. In this video, Singer compares “top-down” portfolio management to seeing entire forests, while “bottom-up” looks at individual trees. The forests he’s referring to are entire asset classes, while individual securities within an asset class can be looked at like individual trees within a given forest. He goes on to explain why both types of diversification are important and complementary in a portfolio structure.