Diversification can be dangerous, warns Noster Capital

Pile of multi-coloured 100-share stock certificates
Selective equity investing is the way to returns says Noster

Diversification has been a buzzword since the start of the financial crisis and has been hailed as the way to avoid too many losses in any future crashes. However, Pedro de Noronha, managing partner at London-based hedge fund Noster Capital, advises against it, echoing comments by Warren Buffet, the so-called 'sage of Omaha'.

"We are firm believers that diversified investments are not the best option unless you are a pretty unsophisticated investor," says de Noronha.

"By diversifying yourself

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