Resolve Riffs Investment Podcast

What additional Sleeves can we add to maximize diversity? We discuss: Style premia, factors, smart beta – the benefits and risks Efficient negative Sharpe ratios Redemptions and “noise traders” Larry Swedroe and anomalies Value characteristics and correlations Flows and Arbitrage opportunities

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global*. “The global macro game is far from boring!” Juliette Declercq, Founder & Global Macro Strategist at JDI Research, is not one to mince words, neither on her monthly reports, or on the rare occasions she grants an interview. We had the privilege of hosting her this week for some deeply insightful macro riffing that included: Her bullish case for global equities, particularly European companies Why Big Tech shouldn’t be considered a growth (or long-duration) asset Financial repression as the most urgent macro challenge of our times Inflation, yield curve (no control) and the USD Fiscal policy as the avenue for increased money velocity Crypto Asset – disintermediation, securitization and network effects Banking vs DeFi – the hybrid way forward (and the importance of customer service) Exponential possibilities within the Ethereum ecosystem We also explored Juliette’s investment framework, which takes on a trader’s vantage point – looking no further than the next 12-18 months – and seeks to maximize returns from her best ideas by “allowing winners to run”.  It was an extremely engaging conversation, drawing many questions from the audience. Thank you for watching and listening. See you next week.  

How do we eat Sharpe ratio and meet financial goals with a maximally diversified portfolio? We discuss: Using leverage in a robust and diversified portfolio to preserve diversification while achieving target returns Why “credit” is not a distinct asset class and does not increase diversity Integrating your bets The repercussions of levering up What makes Risk Parity hard

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global*. Jim O’Shaughnessy (chairman and co-CIO of O’Shaughnessy Asset Management) is a Wall Street legend. He is one of the “OGs” of quantitative investing, a best-selling author, and more recently also turned podcaster with his Infinite Loops channel. Jim joined us for a roller-coaster of a conversation that covered: The beauty of marrying science fiction with real science Interviewing people you look up to, and why “no man is a hero to his valet” A fast-changing world requires non-linear thinking Aspirational leadership and nurturing self-confidence Acquiring knowledge, mental models and the future of education How openness to failure can set us up for success Unrelenting optimism – buying the call option on mankind We also discussed the future of the wealth advisory industry, which Jim is confident will be highly dependent on client customization, and we could have easily gone on for a few more hours. But Jim lost his connection towards the very end, mid-laugh (a memorable snapshot for those of you also watching), leaving Adam, Mike and Richard to riff by themselves for the last few minutes. Thank you for watching and listening. See you next week.   *ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.    

Traditional yields are low, so how do we meet our funding obligations? We discuss: Rebalancing highly diversified portfolios to generate 3%-5% in excess returns The Diversification Ratio and maximally diversified portfolios The increased value of maximally diversified commodity sleeves Special advantages for non-institutional investors Hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global. As is often the case with sharp and curious minds, our guest this week traveled a meandering route through his career. While studying meteorology and public health in university, Eric Crittenden (CIO of Standpoint Asset Management) stumbled into an economics class and fell in love with complex dynamic systems. He then joined a family office that was uniquely focused on levering into technology companies in the run up to the Dotcom Crash, a debacle that strengthened his views on the importance of diversification and risk management. We discussed: From a purely cartesian market view, to recognizing the crucial role played by psychology and behavior Early appreciation for the “elevator down, escalator up” type of risk How to give investors both what they want and need His whitepapers, especially “Does Trend Following Work on Stocks?” Why it’s harder to raise capital for diversified strategies, but also harder to get fired Liquidity weighting versus risk weighting Why collecting a risk premium means you are on the “wrong side” of skew Disaggregating term structure from price appreciation in returns – why carry pays Our conversation also covered the benefits of signal generation that combines different phenomena, why in theory, investors want diversification and risk management (but not so much in practice), and much more. A widely entertaining episode, with no words minced and even a moment of collective catharsis. Thank you for watching and listening. See you next week.

Michael Harris started trading rates and derivatives 30 years ago. He is the Founder of Price Action Lab and the developer of the first commercial software for identifying parameter-less patterns in price action 20 years ago. In the past 10 years he has worked on the development of DLPAL, which is a software program designed to identify short-term anomalies in market data for use with fixed and machine learning models.   In this wide ranging interview we discuss:   Back testing and generating trading signals on an Atari Console Loss Compression and Forecasting Data Mining – microfeatures, micropatterns and trend following The hit rate, payoff ratio, profit factor and the Profitability Rule Data Mining Bias and Data Snooping The Seven Weekly Strategies The direction of probability   The conversation was interesting and enlightening as Michael provided new insights into emerging financial technologies. We hope you enjoy it. Thank you for listening.

Diversity of investments only produces “diversification” if asset classes are held in proper balance. We discuss: The 60/40 portfolio and why it’s not diversified or risk-balanced The advantages of Global Risk Parity Portfolios How leverage helps to preserve diversification Hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global.

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global. This week we were joined by Lawrence Hamtil, founder and principal at Fortune Financial Advisors, author of their popular blog, as well as an active member of the FinTwit community. His power lifting hobby and contrarian nature permeate his writing and investment philosophy, which made for a great conversation that included: Why you can’t fire a cannon from a canoe – the importance of building a solid foundation Discipline, preventing major injuries/drawdowns and proper benchmarking – investment wisdom drawn from weight-lifting “We must all suffer from one of two pains: the pain of discipline or the pain of regret. The difference is discipline weighs ounces while regret weighs tons” – Jim Rohn Investment approach shaped by the turmoil of the Great Financial Crisis Tobacco, defense contractors, and other “less desirable” sectors– benefiting from narrative-induced externalities Low beta, minimum variance and inflation risks We also delved into his barbell approach for equities, sector allocations and their cyclical natural, ESG, regulatory moats, and how to avoid value traps. Thank you for watching and listening. See you next week.

Investors are often prone to “home-country” equity bias and other heuristics that leave them under-exposed to the world’s many diverse opportunities. We discuss: The importance of global asset class diversity Ray Dalio and the “All Weather Portfolio” Making portfolios resistant to inflation and growth shocks Hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global.