The last few years have been a rollercoaster for investors. The market has been volatile, asset values have declined, and there is general uncertainty about the future. In times like these, it's important to have a diversified portfolio that can weather the storm. Hedge funds offer a unique opportunity for investors to hedge against risk and protect their portfolios.

In this episode, Rusty and Robyn talk with Andrew Beer, Managing Member at Dynamic Beta investments. Andrew started in the hedge fund industry in 1994 when he joined the Baupost Group as one of six generalist portfolio managers. Over the past decade, Andrew's singular focus has been to identify strategies to match or outperform portfolios of leading hedge funds with low fees, daily liquidity, and less downside risk.

A pioneer in hedge fund replication, Andrew talks with Rusty and Robyn about hedge funds, hedge fund strategies that investors find helpful, and how hedge funds are becoming a new fixed-income substitute.

Key Takeaways

[03:06] - What motivated Andrew to specialize in hedge funds.
[07:24] - The role of Dynamic Beta investments in the hedge fund industry.
[08:53] - Andrew's thoughts on what's currently driving the markets.
[10:44] - The outlook for traditional stock and bond markets.
[11:58] - How investors can improve the risk-adjusted return potential of a traditional balanced portfolio.
[14:12] - An in-depth look at hedge funds.
[15:36] - What replication means at Dynamic Beta investments.
[17:29] - Hedge fund strategies that investors find helpful.
[20:01] - What investors should look for when investing in managed futures.
[22:11] - How hedge funds are becoming a new fixed-income substitute.
[25:09] - Typical allocations to hedge fund strategies and managed futures.
[29:43] - How Andrew invests personally.
[31:34] - How Andrew keeps his physical and mental well-being to perform at his best.
[32:49] - People Andrew is thankful for on a professional level.
[35:41] - Andrew's recommendations for content.

Quotes

[12:19] - "What's the best diversifier on planet earth, where we want to put our money if we can? The answer for us is managed futures." ~ Andrew Beer

[13:20] - "Stocks and bonds are incredible investments over time. But stocks, bonds, and managed futures are the right diversified portfolio." ~ Andrew Beer

[27:43] - "The vast majority of products created in the ETF world are single-manager products, and single-manager products on a standalone basis don't have a role in the asset allocation model." ~ Andrew Beer

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2004-OPS-10/25/2022

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