Prometheus Podcast Episode 4: Victor Haghani
22 snips
May 11, 2025 
Victor Haghani, founder of Elm Wealth and a notable figure from Long-Term Capital Management, shares his expertise in wealth management. He breaks down their systematic approach to asset allocation, emphasizing the significance of expected returns and dynamic index investing. Victor introduces their new ETF, ELM Market Navigator, designed for tax efficiency and lower volatility. He highlights the importance of adapting strategies based on personal beliefs and market dynamics, advocating for a disciplined yet flexible investment framework.
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Stick-To-It Investment Strategy
- Victor Haghani emphasizes that the best investment strategy is one you'll stick with long term.
- Investment decisions should focus on expected returns relative to risk, not just past performance.
Merton Share Formula Explained
- The Merton share formula guides how much risky assets to hold based on expected returns, risk, and risk aversion.
- Elm Wealth applies this rule by adjusting allocations dynamically to expected risk premia and market risk.
Alpha vs Beta in Allocation
- Beta changes over time with market risk and expected returns; alpha is market-neutral return from uncorrelated trades.
- Asset allocation should match expected risk and return rather than a fixed equity baseline.
