
Show Us Your Portfolio: Adam Butler
Excess Returns
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The Importance of Tracking Error Risk in Portfolio Theory
The majority of anomalies in the finance literature are really just a mischaracterization of risk. Most people are actually trying to minimize tracking error rather than volatility. CTA's historically and mechanically are expected to do best during periods of inflation shocks. They're there when things are falling apart with stocks and bonds, they're there.
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