The Best Investment Writing Volume 5: Peter Chiappinelli, GMO – The Passive Aggressive Agg, Revisited
The Meb Faber Show - Better Investing
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How to Deviate From the Benchmark to the Ag
Giemo's flagship balance strategy had an 800 basis point underweight to bonds, with a flattish yield curve and much more room for bond rates to rise rather than fall. We believe cash, like assets, offer a superior risk return trade off. For those bond portfolios that have an explicit bench marking to the ag, we are spending our risk budget on out of bench mark credit sectors. Third thing you can do is alpha overlay - take relative value positions in various sovereign bond markets and currency markets.
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