Not necessarily. Modern portfolio theory is a lot more complex than (say) buying and holding a single stock. But it's a lot less risky.
> you need the smartest people in the room
Maybe you don't need the smartest people in the room, but it helps not to have too many stupid ones. The real problem is that it can be really hard to tell which is which.
Sure, and they can also lose a lot of money.
> complexity adds risks
Not necessarily. Modern portfolio theory is a lot more complex than (say) buying and holding a single stock. But it's a lot less risky.
> you need the smartest people in the room
Maybe you don't need the smartest people in the room, but it helps not to have too many stupid ones. The real problem is that it can be really hard to tell which is which.