Investors face a risk that has gone virtually unnoticed, unmentioned, unmeasured, and which from time to time destroys their capital.

Complexity Risk walks the investment world freely.

Five years ago I published a white paper entitled "Complexity Risk: A New Risk Category". In it, I defined "complexity risk" as the potential for an investment to generate returns that are different than those anticipated. Investments like short term U.S. Treasury bills are the least complex. Indeed, they're so simple

they don't even have a prospectus. You buy them and in three months you get your money back, plus interest at the stated rate. However, other investments appear to be just as simple but are wildly complex under the surface. Like Double Jeopardy, the investment "scores" can really change…