Alpha Exchange

Corey Hoffstein, CIO, Newfound Research

19 snips
Apr 30, 2025
Corey Hoffstein, Co-Founder and CIO of Newfound Research, is revolutionizing investment strategies for high-net-worth clients. He discusses the challenges of diversifying beyond traditional stocks and bonds, introducing innovative concepts like return stacking through ETFs. Corey compares risk characteristics of corporate bonds with merger arbitrage, revealing lower correlations with equities. He also shares insights on trend-following strategies and their defensive qualities during market downturns, shedding light on persistent risk premiums for savvy investors.
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INSIGHT

Return Stacking Solves Diversification

  • Return stacking allows investors to maintain core stock and bond exposure while adding alternative strategies on top.
  • This approach solves both mathematical portfolio optimization and behavioral frictions with diversifiers.
INSIGHT

Lessons From Portable Alpha Failures

  • Portable alpha failed during crises due to margin calls and liquidity mismatches.
  • Successful modern implementations focus on porting on bonds and using turnkey solutions for better risk management.
INSIGHT

Trend Following's Variable Defense

  • Trend following strategies vary widely in implementation and performance dispersion is high.
  • Recently, trend following was not defensive initially but quickly de-risked across markets following drawdowns.
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