How to Invest in a Return Stacking Fund

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You could just sell some of your stocks and buy something like NTSX. There are funds out there that provide you exposure to equities and layer managed futures on top. What I would suggest though is that if you are an aggressive investor pursuing growth, you might be better off actually not holding 100% equities. You might be betteroff holding 80% equities, 20% bonds and 20% managed futures. It seems contradictory, but by actually reducing the equities to make room for other diversifying asset classes, you can actually ideally move yourself sort of up into the left on that risk return profile.

Rebecca Hotsko chats with Corey Hoffstein, and together they discuss the concept of return stacking, its mechanics, leverage determination, fund selection, and a whole lot more!

Corey Hoffstein is the co-founder and Chief Investment Officer at Newfound Research, which is a quantitative investment and research firm managing strategies that implement Return Stacking concepts.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro.

06:08 - The different types of funds that are available to investors to implement return stacking.

06:19 - What return stacking is and how this strategy works?

10:36 - The different ways this strategy can be implemented and the portfolio solutions it provides.

22:31 - How to decide how much leverage to take, and how much return stacking strategies should make up of the total portfolio allocation?

40:03 - The factors that contributed to the poor performance of certain return stacking ETFs since 2021.

42:55 - The common mistakes investors make when implementing this strategy.

46:01- What factors impact the effectiveness of this strategy?

52:49 - How to mitigate risk when this strategy breaks down?

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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Check out: Newfound Research.
Related Episode: Listen to MI260: Top Stock Picks 2023 w/ Logan Kane, or watch the video.

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