Flirting with Models Talk Your Book: Return Stacking [REPLAY]
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Aug 20, 2024 Corey Hoffstein, a specialist in managed futures from Newfound Research, joins the discussion on innovative investment strategies. He dives into return stacking, revealing how it enhances capital efficiency in portfolios. The conversation touches on the complexities of diversifying beyond traditional methods, the impact of high-interest rates, and leveraging alternative assets. Hoffstein also navigates the evolution of investment strategies post-2008 and shares insights on the role of personality in successful asset management.
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Return Stacking Solves Diversification Problem
- Diversification is important, but often involves selling existing assets.
- Return stacking offers a solution by adding diversifier returns on top of core holdings.
Leverage with Futures
- Use financial futures to leverage your portfolio and stack returns efficiently.
- Match liquid assets with liquid assets to manage risk effectively.
PIMCO's Similar Strategy
- PIMCO uses a similar strategy, 'Stocks/Treasury Plus', by leveraging bonds to enhance returns.
- This involves investing freed-up capital in slightly riskier bonds for extra returns.