This edition of Fathom the Strategy combines machine-learning techniques and our proprietary Financial Vulnerability Index (FVI) to create equity portfolios with superior risk-adjusted returns compared to traditional benchmarks and other simplistic approaches. We exploit the idea that diversification should be the only free lunch available in finance as long as risks are correctly identified and weighted up. We find that the fundamental, macroeconomic characteristics of different markets matter substantially more than just prices in identifying risks and building well diversified...