Resolve Riffs Investment Podcast – Détails, épisodes et analyse

In this episode, the ReSolve team is joined by Doomberg, a popular regular on the show, to discuss a wide range of topics including AI, geopolitics, energy, and the financial markets. They delve into the complexities of the emerging multipolar world, the rise of China in the technology sector, the implications of AI, and the potential risks and nuances within different levels of the capital structure.

Topics Discussed

• The rise of China and its implications for the Western world in terms of semiconductors, high computing, and Quantum computing

• The potential of AI and its transformative impact on professional lives and the world at large

• The geopolitical risks, specifically the Chinese intent on dominating the business landscape

• The unique situation of Taiwan as a major producer of semiconductors and its implications for global supply chains

• The challenges of predicting the decisions of nonlinear systems and the impact of major perturbations on politics, energy, society, and culture

• The role of social media in amplifying voices from the edge of the network and the challenges this presents for lay people and experts alike

• The potential for a breakdown in trust between the population and the government-media-medical nexus

• The impact of the changing energy landscape on the U.S.'s geopolitical world view

This episode is a must-listen for anyone interested in understanding the complexities of the emerging multipolar world, the role of AI, and the geopolitical shifts in the global landscape. It provides valuable insights into the intricacies of these topics and strategies to navigate the uncertain future.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

Portable alpha (or as we like to call it: Return Stacking) has become increasingly popular in the financial media (including recent notes from industry giants like BlackRock, Russell Investments, and AQR) but many advisors are left asking: What does portable alpha mean? How might it benefit clients? How can I implement it?

At Return Stacked Portfolio Solutions we have made it our mission to thoughtfully and transparently help allocate into a portable alpha framework for client portfolios.

Join us for this deep dive podcast with Corey Hoffstein, CIO of Newfound Research, and Rodrigo Gordillo, President and Portfolio Manager at ReSolve Asset Management Global, as we explore:

• What 'Portable Alpha' is: Review of the history and theory of the concept.
• Outperformance Potential: Portable alpha/return stacking allows allocators to stack asset classes/strategies with positive expected returns on top of core assets which can help improve the likelihood of outperforming the market.
• Diversification Benefits: Using return stacking to stack low correlation strategies on top of the core portfolio can help reduce portfolio drawdowns, thus influencing likelihood of achieving financial plan goals.
• Behavioral Benefits: Sticking with low-correlation diversifiers can be difficult for clients. Return stacking can improve the likelihood clients stick with diversifiers long enough for them to realize the benefits.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

In today’s ReSolve Riffs we’re taking the opportunity to introduce the inaugural episode of a brand new podcast channel called the Get Stacked Investment Podcast. In this series, we dive deep into the world of Return Stacking, exploring the latest projects, content, and insights from the www.returnstacked.com website.

Co-hosted by Corey Hosteen, CIO of Newfound Research, along with the support of our own Mike Philbrick and Adam Butler this promises to be an insightful and valuable too in your investment arsenal. Subscribe to the Get Stacked feed using the link in the description to stay up-to-date with the latest episodes and never miss a beat in the exciting new world of Return Stacking.

In this episode, Corey Hoffstein from Newfound Research, and Rodrigo Gordillo and Adam Butler of Resolve Asset Management Global, discuss the concept of return stacking and its implications for investors. They delve into the challenges of beating the large-cap U.S. equities market, the shift in conversations about return stacking from risk management to creating excess returns, and the potential of diversification in generating consistent positive excess returns.

Topics Discussed

• The difficulties of beating the large cap U.S. equities market and the need for diversification

• The shift in conversations about return stacking from risk management to creating excess returns

• The potential of diversification in generating consistent positive excess returns

• The idea of dictum in the markets and the difference between behavioral time and statistical time

• The concept of risk parity and the importance of maintaining balance in portfolio risk

• The role of trend following in risk management and return stacking

• The potential of stacking strategies in enhancing portfolio returns

• The structural challenges in implementing return stacked strategies in portfolios

• The importance of diversification in ensuring investment success

This episode provides valuable insights into the concept of return stacking and its potential in enhancing portfolio returns. It is a must-listen for investors interested in diversification strategies and the future of investment management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

This week we had the pleasure of hosting Mark Yaxley, founding partner of Strategic Wealth Preservation, which specializes in the acquisition and storage of precious metals for investors around the world. He also brought his team member Philip Zappacosta to the conversation, which covered topics that included:

• Mark’s journey through the commodity space, before founding SWP
• The reasons that drive investors to own physical precious metals
• Different wealth objectives – creation vs growth vs preservation
• Property rights and jurisdiction considerations
• Understanding the role gold has played throughout history
• Watching the behavior of central banks
• Why loyalty to an asset-class doesn’t always stem from being “bitten by a bug”
• Why gold should be considered true money
• The role of other precious metals in portfolios
• The densest precious metal that you probably never heard of
• Silver – hundreds of industrial applications, less attractive in Asia and Europe and likely the most underpriced today
• Bar sizes, purity, utilities and different premiums
• The importance of holding smaller bars for liquidity – fractional ownership in the physical space
• Why gold hasn’t performed as expected in a year of high inflation
• When to invest in futures, ETFs or miners vs outright physical metals

Thank you for watching and listening. Happy holidays, see you in January.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

This week we spoke with Glen Burella, PhD, Vice President, Business Development at Abbey Capital (US). Glen previously worked on the investment research side of Abbey Capital having a background in quantum computing and a theoretical physics PHD.

Our conversation with Glen covered the following themes:

• The incredible combination of stocks and trend following
• Glen’s attraction to science and math
• A glimpse inside a PhD in quantum physics
• First days at a new quant firm
• Behind the scenes at Abbey Capital’s research division
• Launching new products and taking business risk
• Abbey Capital’s focus on multi-manager portfolios
• Why multi-manager instead of single ensemble?
• Dealing with performance fees in a multi-manager portfolio
• Segregated accounts vs trade netting
• Selecting managers and assembling portfolios
• The role of CTAs in institutional mandates
• How CTAs are an optimal solution for the coming inflation volatility regime

Thank you for watching and listening. See you next week.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

This episode features Ben Hunt, founder of Second Foundation Partners, which hosts the Epsilon Theory content portal.

I reached out to Ben because I’d been starting to feel myself shifting gears on my feelings and perceptions around the ongoing COVID pandemic, and I knew Ben would be able to help put things in proper perspective.

For most of the past 18 months or so I have been firmly in support of most of the measures taken by governments to manage the health impacts of the virus. We adhered strictly to lockdown guidelines, supported border closures, followed protocols, and received vaccines and boosters as soon as they were available.

But over the past few weeks I’d felt myself becoming frustrated with the lack of progress on the policy front. After all, residents of developed countries have had access to highly effective vaccines for almost 9 months. Every resident has had ample opportunity to get fully vaccinated at no financial cost, and residents of many countries have had plenty of time to get free booster shots.

Yet still, here we are. Everyone I talk to seems to be much more terrified of testing positive than of actually getting the virus. Everyone wants to travel, or go back to university, or see family – live a fulfilling life with the people we care about! – but they’re petrified about facing trip cancelations, quarantines, and/or huge expenses from a positive COVID test.

Isn’t the world upside down when most people are more afraid of running afoul the regulations in place to prevent a danger, than they are of the danger itself!

These are the themes I felt I needed to cover with Ben, and we did cover most of them in our 90 minute conversation. Ben was extremely patient and generous with his time, wisdom and insights. However, I admit to still feeling like several critical points went unresolved. This gap was definitely my fault, and not Ben’s. It just took me a few days of further ruminating to see the holes I wanted to fill.

I think this is an important and timely conversation with someone who understand the topic from top to bottom, and who sees the issues with clear eyes, and a full heart. I hope you get as much value out of it as I did.

Daruis Dale is the Founder and CEO of 42 Macro, an investment research firm that aims to disrupt the financial services industry by democratizing institutional macro-grade risk management frameworks and processes. Prior to founding 42 Macro, Darius was a Managing Director and partner at Hedgeye Risk Management, an independent investment research firm based in Stamford CT. He joined us for jam-packed and timely conversation that included topics such as:

• Positioning for inflation volatility and the “Midas Touch”
• The Fed and accelerating the taper
• The Dynamics of the recent “Friday Smackdown”
• The missing “Guardians of the Gate”
• The implications for bonds
• Cyclical changes and secular regimes
• Declaring regimes and pricing them in
• Portfolio construction and conditional probability
• Why you don’t get paid for being too early
• Frontrunning pricing with intuition and expectations
• The Style Factor and why it’s the best predictor
• Back-testing regime ensembles
• Covariance ranking, layering and beta ranking in portfolio construction
• Selecting and weighting macro indicators
• Behavioral Economics and why being different is important
• The impact of Bitcoin on portfolios
• The effects of expensive markets relative to inflation
• Policy mistakes and corrections

Thank you for watching and listening. See you next week.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

Phil Huber is the Chief Investment Officer of Savant Wealth Management, and author of The Allocator's Edge: A Modern Guide to Alternative Investments and the Future of Diversification. He joined us for a great discussion that covered topics such as:

• Educating advisors on the role of alternative strategies in portfolios and their benefits
• Recency bias and why “hindsight is 60/40”
• A different approach to building a truly balanced portfolio
• Why allocators find it difficult to diversify away from stocks and bonds, despite recognizing how expensive they currently are
• Dealing with an environment that most financial professionals have never come across in their lives
• Embracing alternative risk premiums and trying to understand why they work
• Private equity and hedge funds – the ‘gateway’ alts
• Niche vs large managers – why size matters and finding the sweet spot
• Path dependency and sequence of returns
• Communication challenges and getting clients across the line to embrace a novel approach
• Line item risk vs portfolio ‘gestalt’
• Fiduciary responsibilities, diversification, fees and behavioral considerations
• Behavioral coaching as an integral part of an advisor’s job
• A wide range of experiences and unrealistic expectations – why alternative strategies haven’t been fully embraced by retail investors
• In the absence of value, we negotiate price
• Overcrowding, passive-flows and factor underperformance
• The pitfalls of overly conservative assumptions
• Minimizing regret vs maximizing utility
• Plan vs planning – a perpetual, ongoing exercise

Thank you for watching and listening. See you next week.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

Jack Forehand is co-founder, partner and CIO at Validea Capital, and is also the co-host of the popular Excess Returns podcast. He joined us for an awesome conversation that included topics such as:

• The different styles for interviewing guests –preparation vs improvisation
• Factor models to decompose the returns achieved by famed managers
• Peter Lynch and the real mystery behind his track-record
• Momentum vs return chasing
• Cycles, underperformance and the benefits of combining different methodologies
• The hard problem of factor allocation based on historical returns
• A pragmatic approach that earned Jack his Twitter Handle – @practicalquant
• Education, discipline and adherence
• The incredibly long winter experienced by the value factor – is it over
• Behavioral vulnerabilities – knowing about them doesn’t dampen their effect
• Holding minimum amounts of cash – the additional tail-wind for indexed products
• Tracking error can be more painful than the risk of losses
• Why finding your like-minded tribe is a crucial component of sticking with a strategy

Thank you for watching and listening. See you next week.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.

Perth Tolle is the founder of Life + Liberty Indexes, an index provider and sponsor of the Freedom 100 Emerging Markets ETF – a first of its kind strategy that uses personal and economic freedom metrics as primary factors in its investment process. She joined us for a great conversation that included:

• How her early life in China, Hong Kong and the US shaped her perceptions of freedom
• Isolating the “freedom factor” and using it, not as a tilt, but the primary basis for investment decisions
• The enormous task of quantifying, converting, and scaling 76 different metrics, many of which are qualitative
• Political, judicial, economic and social – freedom measured in its many forms
• Settling contradictions when different freedoms collide
• Why Perth has avoided the ESG label
• The many signs that suggested that this was a product that needed to exist
• Stumbling onto a fishing trip with industry heavy-weights and securing seed capital
• Reaching the important milestone of USD 100 million assets under management
• Forging her own path in an extremely competitive and challenging industry
• Accepting that she can no longer travel to several countries because of her work
• Her partnership with Alpha Architect
• New projects on the horizon

Thank you for watching and listening  See you next week.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.