This is Eric Golden and my guest this week is by Corey Hoffstein, the Founder and Chief Investment Officer of Newfound Research. Corey offers a fascinating and distinctive take on investing, which we delve into during our discussion. We cover topics like portfolio allocation, diversification and the innovative approach known as Return Stacking. We wrap up with lessons learned from 15 years of running an Asset Management firm. Please enjoy this conversation with Corey Hoffstein
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Show Notes
(00:02:00) - (First Question) The origins of the 60/40 portfolio
(00:04:30) - How to tackle the allocation problem when it comes to 60/40
(00:08:15) - How Corey deals with the doubters when the strategy doesn’t work
(00:12:00) - Reasons why it makes sense to continue to participate even when there have been periods of underperformance
(00:15:00) - Diversification in futures and stocks to create a less volatile investment journey
(00:19:15) - The origins of return stacking
(00:28:00) - Skepticism, evolution, and potential risks associated with portable alpha
(00:33:30) - The need for careful risk management and the importance of rebalancing when using leverage to amplify investment returns
(00:36:30) - Using historical data to determine the funding rate
(00:40:00) - Implied funding rates and the spread between futures markets and spot markets
(00:44:45) - The complexity of measuring market positions and strategies when it comes to futures and bonds
(00:46:30) - The challenges Corey faced when starting an asset management firm
(00:52:45) - The importance of presenting products in an understandable way for investors
(00:54:30) - Examples of products or investment ideas that Corey got wrong
(00:58:30) - The competitive nature of the ETF landscape and the importance of branding
(01:02:00) - Corey’s success navigating the challenging landscape of the ETF space
(01:05:15) - Fee competition and brand differentiation have led to firms exploring regulatory grey areas
(01:06:30) - The distinction between speculation and investing
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Making Markets