The Algorithmic Advantage 027 - Corey Hoffstein - Return Stacking, ETFs & Trend Replication
Sep 25, 2024
Corey Hoffstein, co-founder and chief investment officer at Newfound Research, shares his extensive expertise in quantitative trading and trend following. He discusses the significance of optimizing business and trading decisions and the importance of understanding market dynamics. The conversation dives into innovative investment strategies, revealing how return stacking can enhance capital efficiency. Hoffstein also explains the delicate balance between improving returns and client comfort, alongside the challenges of navigating market complexities with ETFs.
AI Snips
Chapters
Transcript
Episode notes
Newfound Research's 15-Year Journey
- Corey Hoffstein founded Newfound Research in 2008 as an outsourced quantitative research firm.
- Over 16 years, it evolved into an asset management firm launching successful Return Stacked ETFs in 2023.
Business vs Trading Decisions
- Market participants often make optimal business decisions at the expense of trading efficiency.
- Understanding these dynamics helps traders exploit suboptimal trading decisions by other market players.
Return Stacking Background
- Return stacking repackages a 40-year institutional concept called Portable Alpha using capital-efficient derivatives.
- This combines core beta exposure with alternative alpha strategies, like managed futures, to enhance returns.