How to Allocate Your Portfolio Strategically

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I think this is a way of rethinking how you build your portfolio, right? To make it a line much more with the tenets of modern portfolio theory or the way institutions have been doing this. My portfolio actually very much looks like 80% stocks, 20% bonds and like 30% managed futures. So there's different ways you can put this together, but I absolutely think it's a way to reframe how you should be allocating strategically.

Rebecca Hotsko chats with Corey Hoffstein, and together they discuss the concept of return stacking, its mechanics, leverage determination, fund selection, and a whole lot more!

Corey Hoffstein is the co-founder and Chief Investment Officer at Newfound Research, which is a quantitative investment and research firm managing strategies that implement Return Stacking concepts.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro.

06:08 - The different types of funds that are available to investors to implement return stacking.

06:19 - What return stacking is and how this strategy works?

10:36 - The different ways this strategy can be implemented and the portfolio solutions it provides.

22:31 - How to decide how much leverage to take, and how much return stacking strategies should make up of the total portfolio allocation?

40:03 - The factors that contributed to the poor performance of certain return stacking ETFs since 2021.

42:55 - The common mistakes investors make when implementing this strategy.

46:01- What factors impact the effectiveness of this strategy?

52:49 - How to mitigate risk when this strategy breaks down?

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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Check out: Newfound Research.
Related Episode: Listen to MI260: Top Stock Picks 2023 w/ Logan Kane, or watch the video.

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