International Law and Immigration

Ca. Int'l Law Journal SPRING 2014, VOL. 22, NO. 1

Immigrant Investor Visas and Diversification: An Application of Modern Portfolio Theory to EB-5 Regional Centers

By William Tolin Gay1

I. INTRODUCTION

The EB-5 or immigrant investor visa process is a method of obtaining green cards for wealthy foreign immigrants who invest money in the United States. The basic requirement for the EB-5 visa is to invest a certain sum of money in a business enterprise that creates at least ten permanent jobs over a two-year period. For the past several years, most immigrant investors have elected to invest in "regional centers," rather than creating their own businesses.2 A broad range of investment options are available to foreign immigrants, with varying levels of risk and return. This paper assumes that the principal reason for investing in a regional center is obtaining permanent residence.

Modern portfolio theory ("MPT") is a financial analysis methodology that assumes an investor can reduce overall risk, without necessarily reducing expected return, by means of intelligent diversification over a carefully selected portfolio of investments. MPT is at the core of most modern investment models.

Join CLA to access this page

Join

Log in

Forgot Password

Enter the email associated with you account. You will then receive a link in your inbox to reset your password.

Personal Information

Select Section(s)

CLA Membership is $99 and includes one section. Additional sections are $99 each.

Payment