Flirting with Models Victor Haghani – The Last of the Tactical Allocators (S7E13)
96 snips
Dec 9, 2024 
Victor Haghani, founder of Elm Wealth and a pioneer in dynamic index investing, discusses the evolution of investment strategies after 2011. He argues for a rational, principle-based approach to asset allocation, emphasizing simplicity in forecasting returns. Victor explains the critical balance between risky and safe assets while navigating equity market risks. He delves into the role of discount rates and earnings expectations in market volatility and critiques traditional portfolio management, advocating for adaptive strategies that focus on risk-adjusted returns.
AI Snips
Chapters
Transcript
Episode notes
Victor's Investment Journey
- After LTCM, Victor Haghani shifted his focus to managing his family's savings.
- He initially emulated the Yale endowment model but found it unsuitable due to high taxes and fees.
Dynamic Index Investing Philosophy
- Dynamic index investing considers expected return, risk, and personal risk aversion.
- These factors rationally determine the risky asset allocation.
Calibrating Risk Aversion
- Determine risk aversion by asking clients about hypothetical equity allocations given specific return and risk scenarios.
- Supplement this with questions about their comfort levels with various gambles.