The Derivative

Overheard at a Stacked Portable Alpha Symposium

9 snips
Oct 16, 2025
Join a thrilling exploration into the world of portable alpha and return stacking, where industry leaders unveil innovative strategies for modern portfolio construction. Discover how Delta's pension is being revitalized through diversified hedge funds and leverage. Gain insights into volatility trends and their impact on compounding. RIA advisors share practical advice on tax efficiency and client psychology, while discussions on institutional challenges reveal the complexities of large pension strategies. Networking at this symposium was a treasure trove of ideas, bridging theory and practice.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Return Stacking Raises Return Per Unit Risk

  • Return stacking (portable alpha) increases return per unit of risk by layering uncorrelated return streams.
  • Institutional interest is rising and tracking error tolerance is growing as allocators seek higher Sharpe portfolios.
ADVICE

Explain Leverage As 'Good Leverage'

  • Convince stakeholders with simple metaphors and showable results rather than technical complexity.
  • Emphasize 'good leverage' and how it raises portfolio Sharpe rather than just adding gross returns.
ANECDOTE

Selling A $3B Concentration And Hedging Follies

  • Jonathan Glidden once sold billions of dollars of concentrated Coca‑Cola stock for an endowment to diversify risk.
  • He also described an oil‑hedging desk that made and lost billions, highlighting human and governance risks.
Get the Snipd Podcast app to discover more snips from this episode
Get the app