Explain the concept of a core-satellite portfolio and why it is commonly used by large pension funds.

Question:

Explain the concept of a core-satellite and why it is commonly used by large pension funds. Include a discussion of how private equity and hedge funds fit into this type of Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...