ALO03: Lessons from a $25 billion CIO ft. Elizabeth Burton
Top Traders Unplugged
Is There a Bias to Systematic?
The macro markets can be really challenging, especially in the single risk taker model. Rat: I think one of the reasons i got into this business is i just love the old macro guys. There's so many different things you can use them for. We want a short trading horizon that can change their signals on the ona dime if the markets look like their whip sawing a.
Alan Dunne is joined today by Elizabeth Burton to discuss managing a public fund versus a private fund, the challenges to those invested in the traditional 60 / 40 portfolio, the current outlook for inflation, performing above expectations, how to re-position a portfolio for higher expected inflation, fixed income versus real assets, categorising asset classes effectively, the limits of mean variance optimisation, using historical perspectives as an input into current decision-making, difficulties in the manager selection process, and how to simplify complex ideas in order to communicate more efficiently.
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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
In this episode, we discuss:
- The outlook for inflation
- Achieving high performance consistently
- How to re-allocate a portfolio accordingly
- Mean variance optimisation
- Whether this time is different
- Selecting the right manager
- Simplifying complexity for better understanding
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Episode TimeStamps:
00:00 - Intro
03:30 - Elizabeth’s background and history in the investment world
04:55 - Elizabeth’s perspective on today’s markets
06:52 - Managing a public fund versus a private fund
08:14 - Performing above expectations
09:38 - The current outlook for inflation
11:31 - How to re-position a portfolio for higher expected inflation
13:57 - Fixed income versus real assets
14:51 - Categorising asset classes effectively
19:56 - The limits of mean variance optimisation
21:59 - Using historical perspectives as an input into current decision-making
24:09 - Whether this time really is different
25:25 - Difficulties in the manager selection process
28:35 - Choosing between macro and systematic investors
30:08 - The pitfalls of investing with macro traders
32:40 - Investing in a manager who includes crypto in their portfolio
34:34 - Allocating between systematic and discretionary managers
36:45 - How to screen for a good money manager
40:44 - How to respond when a manager is underperforming
43:48 - Process over outcome
47:04 - Working with consultants
52:27 - Lessons from a leadership coach
57:00 - Simplifying complex ideas for better communication
01:00:28 -Advice for aspiring allocators
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