Prometheus Podcast Episode 3: Bob Elliott
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Apr 27, 2025 Bob Elliott, Co-Founder, CEO, and CIO of Unlimited Funds, shares his wealth of knowledge from his time at Bridgewater Associates. He dives into the mechanics of hedge fund index replication and the launch of a new macro ETF aimed at everyday investors. Elliott discusses how to identify non-consensus views for alpha generation, the importance of diverse assessment tools in evaluating market growth expectations, and strategic insights on gold as a diversifying asset. His analysis provides a rich perspective on navigating today’s complex economic landscape.
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Alpha from Non-Consensus Views
- Alpha is generated by having non-consensus views differing from widely priced-in expectations.
- Understanding what is priced in is crucial to spotting opportunities to generate alpha in markets.
Piecing Together Market Pricing
- To assess what markets price in, combine equity performance, bond comparisons, earnings estimates, and consensus expectations.
- Innovative use of surveys, including Twitter polls, enhances the understanding of market expectations.
Balance Alpha and Beta Exposures
- Before adding alpha strategies to your portfolio, balance alpha with reliable beta exposures.
- Most investors overestimate their alpha skill and should minimize frequent portfolio tinkering.