In this episode of Insight is Capital, Pierre Daillie chats with Jason Buck, Chief Investment Officer at Mutiny Fund, to discuss defensive and offensive strategies in portfolio management - with equity valuations of the "Magnificent 7" it's now particularly essential for advisors and investors alike to consider defense ahead of any potential reversals. Buck points out that from a business perspective, advisors are leveraged to the equity market by 3-4x, when their business AUM is exposed to drawdown risks. Jason shares his journey from a real estate developer affected by the 2008 financial crisis to a consultant on risk management and bespoke long volatility strategies. He highlights the 'cockroach investment strategy' and the necessity of combining offensive assets like stocks and bonds with defensive assets like long volatility and commodity trend advisors. The importance of rebalancing, the concept of convexity, and the practical application of strategies like the Harry Brown portfolio model are discussed in detail. Using the memorable Herschel Walker analogy, Jason underscores the importance of a well-diversified portfolio. This episode is essential for investors and advisors looking to understand the implementation and benefits of a balanced approach to portfolio construction.

Timestamped Highlights

00:00 Introduction - Guest - Jason Buck, Mutiny Fund

00:14 Jason Buck's Background and Investment Philosophy

00:49 The Cockroach Investment Strategy

01:20 Podcast Disclaimer and Welcome Back

01:49 Discussing the Cockroach Strategy

03:08 Importance of Diversification and Defense Strategy

04:44 Launching the Defense Strategy

06:47 The Great Financial Crisis and Its Lessons

07:40 Combining Offensive and Defensive Assets

08:53 Harry Brown's Four Quadrant Model

09:33 Modern Portfolio Techniques and Convexity

12:33 Commodity Trend Advisors (CTAs) Explained

14:12 The Role of CTAs in Inflationary Environments

15:01 Ensemble of CTAs for Robust Returns

24:04 Challenges in Explaining Trend Following

30:43 Understanding the Buy Button Mentality

31:05 The Case for Commodity Trend Following

31:38 Challenges in Portfolio Allocation

32:42 Financial Advisors and Client Resistance

34:37 The Importance of Defensive Assets

36:37 Cash and Capital Efficiency

39:19 Long Volatility and Tail Risk Explained

41:02 Convexity and Portfolio Insurance

48:51 Rebalancing for Effective Compounding

55:45 The Herschel Walker Trade Analogy

58:57 Conclusion and Final Thoughts

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