IL01: Turning Water Into Wine with Diversification ft. Antti Ilmanen

Jun 29, 2022

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In today’s episode, Antti Ilmanen, author and Global co-head of the Portfolio Solutions Group at AQR Capital Management, joins us to discuss key learnings from his new book, “Investing Amid Low Expected Returns”. We break down why commodities are crucial for generating returns in periods of high inflation and how to manage risk through diversification. We also discuss portfolio construction and whether bonds are still valuable in a diversified portfolio, market timing and how to balance emerging markets and developed markets in your investment strategy, why a diversified blend of risk premia is advantageous and finish off highlighting potential pitfalls of using long-term data and much more.

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Episode TimeStamps:

00:00 - Intro

03:36 - About Antti’s book, “Investing Amid Low Expected Returns”

15:22 - The importance of commodities, especially during inflationary times

21:36 - What’s up with bonds?

30:06 - Emerging markets vs. high beta

38:40 - Alternative risk premia...both Alpha & Beta like

47:00 - The idea of valuation spreads and crowding concerns

52:04 - The defensive bucket...getting rid of the junk

01:02:16 - Summary by Kevin and Niels

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