The Origins of the Leni

If a replicant in the 1980s sci-fi classic Blade Runner was a genetically engineered, bio-enhanced person with para-physical capabilities, "composed entirely of organic substance," created for slave labor – what does that make Corey Hoffstein and his takes on replicating?  On this episode of The Derivative, we're joined by the model flirting, possible replicant, Corey Hoffstein, who takes us through the intricacies of replication strategies, comparing different approaches and digging deep into the pros and cons of indices vs strategies vs replication. Learn about the challenges faced by replicators in the hedge fund industry, the importance of benchmarks, and the complexities of dispersion in managed futures. 

Corey and Jeff provide insights into the factors that drive trend-following performance in different markets, explore the potential of alternative markets for managers, and delve into the replication of Warren Buffett's strategy, decoding its secrets. Plus, Corey discusses risk weighting, the role of market makers in the ETF ecosystem, and the integration of AI in various domains. This conversation goes beyond robots writing catchy descriptions. Get ready to become a replicant — SEND IT!

Chapters:

00:00-02:04= Intro

02:05-04:13= Babies are easy

04:14-22:20= Efforts in Replication & Leveraged equity

22:21-33:14= When did CTAs, MFs, and Trend Following, become synonymous? Explaining Dispersion

33:15-41:52= Two ways to replicate a strategy, first up: Top Down

41:53-56:07= Replicating a Strategy: Bottom Up

56:08-01:04:29= The immaculate rebalance & not everything needs to be in an ETF

01:04:30-01:10:09= Chat GPT – Good, bad, or ugly?

01:10:10-01:19:21= Word association

Follow along with Corey on Twitter @choffstein and for more information on Newfound Research visit thinknewfound.com. Also make sure to check out Corey's podcasts Flirting with Models & Pirates of Finance!

Don't forget to subscribe to ⁠⁠⁠⁠⁠⁠⁠⁠⁠The Derivative⁠⁠⁠⁠⁠⁠⁠⁠⁠, follow us on Twitter at ⁠⁠⁠⁠⁠⁠⁠⁠⁠@rcmAlts⁠⁠⁠⁠⁠⁠⁠⁠⁠ and our host Jeff at ⁠⁠⁠⁠⁠⁠⁠⁠⁠@AttainCap2⁠⁠⁠⁠⁠⁠⁠⁠⁠, or ⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠ , and ⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠, and ⁠⁠⁠⁠⁠⁠⁠⁠⁠sign-up for our blog digest⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠www.rcmalternatives.com/disclaimer