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Keeping it Simple | Ep. 9: Portfolio Efficiency and Return Stacking

Keeping it Simple with Simplify Asset Management

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Using Leverage to Overcome Variance Drag

The more frequently you reset that leverage, the lower this relative return will be. And that variance drag compounds significantly over time as an asset exhibits more of that sort of whipsaw behavior. So it can become very difficult from a buy and hold perspective to see if your fund is actually outperforming or not.

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