How Can Portfolio Theory Facilitate Ecosystem-Based Fisheries Management?

Fisheries management in the U.S. is traditionally based on a single species, single population, or single stock approach. However, many managers and scientists are advocating for ecosystem-based fisheries management (EBFM) that more widely considers the interactions and dynamics between species and their environment. Loosely analogous to a financial portfolio, portfolio theory in fisheries management- where fisheries in a given area are managed in a portfolio, rather than singularly- may provide an alternate framing to traditional single-species methods.

Management authorities have been hesitant to adopt a portfolio approach formally because of the persistent gap between it as theory and its practical application. Thus, demonstrating worked examples in fishery management regions may allow managers to more thoughtfully explore ways to operationalize portfolio approaches where appropriate. The Lenfest Ocean Program is funding Dr. Steve Cadrin, University of Massachusetts, and Dr. Jason Link, National Oceanic and Atmospheric Administration (NOAA), to lead a research team to investigate different portfolio options and the feasibility of applying them in fisheries management under current legal mandates. The team is also convening an advisory committee comprised of fisheries scientists, managers, economists, and portfolio experts from across NOAA, including headquarters, the regional offices, and fisheries science centers, as well as Science and Statistical Committee (SSCs) members from various Fishery Management Councils (FMCs).