Mutiny Investing Podcast

55. Mutiny Funds - The Defense Strategy

Oct 13, 2023

The hosts discuss the recently launched defense strategy and the concept of sequencing risk in investing. They explore offense and defense in investing, emphasizing the importance of diversification and defensive strategies. They also highlight the limitations of talking about hedge funds and alternatives. Overall, they stress the significance of a defensive approach to investing and introduce their new defense strategy.

49:08

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Quick takeaways

Having a defense strategy in an investment portfolio is crucial to mitigate risks, protect against downturns, and provide stability.

The river analogy highlights the importance of looking beyond average returns and considering the sequence and order of returns, demonstrating how it can significantly impact an individual's financial situation.

Rebalancing and active management are essential components of a defense strategy, ensuring alignment with risk tolerance and investment goals, while trend following in commodity markets helps capture inflationary and deflationary moves.

Deep dives

Importance of a Defense Strategy

Having a defense strategy in an investment portfolio is crucial to mitigate risks, protect against downturns, and provide stability.

Introduction

2min

Sequencing Risk in Investing

8min

Investing Offense and Defense

24min

The Importance of Diversification and Defensive Strategies

8min

The Limitations of Talking About Hedge Funds and Alternatives

3min

The Importance of a Defensive Approach to Investing

4min

We are excited to introduce a new addition to our suite of investment strategies - The Defense Strategy.

It combines Mutiny Fund’s Volatility Strategy and Commodity Trend Strategy. The Volatility Strategy is designed to act as a so-called ‘black swan’ investment, achieving asymmetric gains in times of high volatility or tail risk (e.g. March 2020). The Commodity Trend Strategy is designed to profit during inflationary periods (e.g. 2022) as well as during extended ‘crisis periods’ for stocks and bonds (e.g. 2008).

In combining these two exposures, the Defense Strategy seeks to achieve flat to slightly positive returns during positive periods for stock and bond portfolios while providing its most significant returns in periods of equity market drawdowns or high inflation.

The Defense Strategy is part of the holistic Cockroach Strategy and is intended as a diversifier to be combined with offensive assets in an investor’s portfolio such as stocks, bonds, and private equity.

In this podcast, Jason Buck (Mutiny CIO) and Taylor Pearson (Mutiny CEO) talk through how and why we developed the Defense Strategy and the role we believe it can serve in investors’ portfolios.

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Mutiny Investing Podcast

55. Mutiny Funds - The Defense Strategy

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Importance of a Defense Strategy

The Story of the River Analogy

The Need for Rebalancing and Active Management

The Role of Trend Following in Defense

Long Volatility and Tail Risk as Defensive Tools

Remember Everything You Learn from Podcasts