I invest in mostly stocks, with a mix of individual shares, closed end funds and index tracking ETFs. Its been nice to simplify my holdings a bit by having a limited number of ETFs. However, I'm starting to worry about how much I have tied to a single manager, in case of a black swan style event occurring. I'm sure the investors with Madoff thought they were fairly safe, as how could a money manager of tens of billions run into trouble?
In particular, I have most of my international shares invested through Vanguard (approx $300k, or 25% of my net worth). I'm starting to get to the point where I'm thinking I should have my eggs a little more spread, just in case something happens to Vanguard, or to the way that cross listed (US/Australian) funds are treated.
Anyone else given this much though, about limiting how much exposure they have to a single manager? Most of the talk I see here about diversification is around asset allocation and not managing entity diversification?
And before the bogleheads take this for an attack on Vanguard, its not intended to be, it just happens to be that Vanguard is teh manager I have with the greatest holding (because I think they are great!)