E1. Enter the New World of Return Stacking - Inaugural Episode!
Manage episode 416579489 series 3572448
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.
(0:00) Introduction and discussion on investment strategies (2:03) Sponsor: Returnstack.com (6:36) The challenges and constraints of active management in top-weighted markets (14:18) Analysis of 20 years performance of large cap US funds and questioning the efficiency of large cap US equities (18:30) Introduction to return stacking as a strategy to outperform benchmarks (25:06) Discussion on the differences between stacking alternatives vs active stock picking and understanding active risk budget (29:20) All-weather and all-terrain investing: Balancing optimality and insights into the development of all-terrain portfolios (40:35) The role of trend in diversification, risk parity and all-terrain portfolios with real-world examples (49:05) Discussing risk parity for long-term portfolios and global carry performance during equity bear markets (1:00:38) The importance of diversification in return stack strategies and the structural challenges in adopting them (1:06:44) The potential business benefits for advisors utilizing return stack strategies and reflections on market recovery (1:11:02) Focus on success measures outside of market performance and potential future guests and discussion topics3 episodes