This week we had the pleasure of speaking with Bob Elliot (who can be found on Twitter @BobEUnlimited), CIO at Unlimited, a new investment firm that launched a hedge fund replication strategy in ETF format. Our conversation included:
- Bob’s career and especially his years at Bridgewater Associates
- The synergies between macro research and systematic investing
- Systems that create discipline and leverage (the non-financial kind)
- A better sense-making process within an investment framework
- Why most intuitions are inaccurate
- Identifying inconsistencies between one’s framework and new data
- How the signaling power and precision of any variable can change over time
- Dealing with the scarcity of macro data points within a systematic approach
- Why there is no such thing as a single most important variable in macro investing
- No certainty, just a probabilistic range of outcomes
- Why diversification is one of the fundamental laws of asset management
- The importance of maximizing the number of independent bets in low signal-to-noise domains
- Why the starting point for Bob’s personal portfolio is Risk Parity
- The folly of singularly focusing on the S&P500
- Avoid going “all-in” into any single scenario, no matter how compelling the narrative
- And so much more
This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management Inc.
*ReSolve Global Inc. refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global Inc. is a registered person with the Cayman Islands Monetary Authority.
