Rodrigo Gordillo & Corey Hoffstein - You Now Get To Have Your Beta Cake While Eating Your Alpha Too | #368
In episode 368, we welcome our guests, Corey Hoffstein, CIO and co-founder of Newfound Research, and Rodrigo Gordillo, President and PM at ReSolve Asset Management In today’s episode, we’re talking about return stacking! Corey and Rodrigo joined forces to try and tackle the issue of how to generate returns in an environment with stretched equity and fixed income valuations. We hear how using a little bit of leverage to the traditional 60/40 portfolio can provide more than one dollar of exposure for every dollar invested. Our guests then walk us through what strategies investors can stack on top of their 60/40 portfolio, including global systematic macro, trend following, and tail hedging, and what that does to the risk/return profile.
Key Points
- The Meb Faber Show episode discusses return stacking, a strategy that combines leveraging a traditional 60/40 portfolio with additional diversified strategies to potentially enhance returns without proportionally increasing risk.
- Corey Hofstein and Rodrigo Gordio explore how return stacking can be tailored to individual risk preferences, and they provide insights on various asset classes and their performance during different inflationary environments.
- The concept of structural alpha is highlighted as a way to potentially achieve higher returns through efficient portfolio restructuring, rather than solely relying on traditional active management methods like stock picking.
Follow Rodrigo: Website
Follow Corey: Website
Resources: Return stacking Engineering Targeted Returns and Risk Gain access to their index at live Wall Street Journal Axie Infinity podcast episode Resolve Riffs Podcast Flirting With Models Podcast
Chapters
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| 25:16 | |
| 32:52 | |
| 37:15 | |
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| 49:57 | |
| 1:01:00 | |
| 1:04:16 | |
| 1:10:00 |
Transcript
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