Definition

Modern Portfolio Theory (MPT)

Harry Markowitz's Nobel Prize-winning framework for constructing portfolios that maximize expected return for a given level of risk by combining assets with low or negative return correlations. Popularized for institutional investors by David Swensen at Yale, whose endowment achieved #1 performance for 20 consecutive years by diversifying heavily into alternative assets (real estate, private equity, natural resources) rather than concentrating in public equities and bonds. CJ Follini spent 35 years applying MPT principles for ultra-high-net-worth families and is now embedding the same framework into Noyack's Profit AI portfolio optimization agent for individual investors.

From the episode “Millennials Will Inherit Trillions”

Hear it on the podcast1 episode

Millennials Will Inherit Trillions

Learn the language of AI-native founders

Every week: the new terms, tools, and workflows founders are using, straight from the podcast.

Related terms in Finance & Markets

LTV (loan-to-value)The ratio of a loan to the value of the asset securing it. On-chain equity opens LTV-based lending against private shares that were previously illiquid.MCA (merchant cash advance)An expensive alternative funding product with APRs Anthony says can reach 400%.MGA (managing general agent)An entity with authority to underwrite and bind policies on behalf of an insurer. Redberry writes and prices its own policies but pays claims from a carrier's balance sheet.Mobility HubsThe emerging repurposing of underutilized structured parking garages into multi-use urban logistics infrastructure. Post-COVID, structured parking in tier-1 and tier-2 cities dropped from 75–80% occupancy to roughly 40%. CJ Follini's investment thesis: ground floors and mid-levels become micro-fulfillment centers (Amazon/Walmart lockers, cold storage for artisanal grocers who need 2,000 sq ft of refrigerated space but can't afford million-square-foot regional facilities), while rooftops become landing pads for eVTOL (electric vertical takeoff and landing) air taxis — with companies like Joby and Archer actively scouting structured parking rooftops. The first commercial urban eVTOL flights are expected in Q4 2026. Mobility hubs convert a depreciating asset into layered logistics infrastructure at the center of last-mile distribution.MSOManagement services organization, an entity that handles non-clinical operations for providers.Net 90Payment terms giving the buyer 90 days to pay.NO FAKES ActNurture Originals, Foster Art, and Keep Entertainment Safe Act. Would create a federal property right in an individual's voice and visual likeness, replacing the current patchwork of state right of publicity laws. Advanced unanimously out of Senate Judiciary on 18 June 2026. Not yet law.NOINet operating income, the bottom-line number Grotto ties its results to.

Browse all 1,456 terms