Flirting with Models [PREVIEW] Enter the New World of Return Stacking | Get Stacked Podcast
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May 6, 2024 
Financial experts Corey Hoffstein, Rodrigo Gordillo, Mike Philbrick, and Adam Butler discuss Return Stacking, market efficiency, and innovative investment strategies. They explore structured diversification, creating excess returns, and portfolio sustainability beyond traditional stock picking. The podcast provides valuable insights for navigating modern markets with confidence.
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Efficiency Limits Stock Picking
- Large-cap US equities, especially the S&P 500, are highly efficient and very difficult to consistently outperform by stock picking.
- Return stacking offers a better chance to generate positive excess returns beyond traditional active stock selection.
Return Stacking's Changing Role
- Market shifts from risk management focus in 2022 to growth and excess return focus in 2023-2024.
- Return stacking evolved from plugging risk holes to creating consistent excess returns over traditional stock picking.
Active Managers' Constraints
- Active managers face structural constraints limiting overweighting top holdings like the Magnificent Seven.
- Many long-only managers end up underweighting high-weight stocks, reducing chances to outperform benchmarks.