ReSolve Riffs with Jack Forehand on Excess Returns and a Factor Renaissance

Jack Forehand is co-founder, partner and CIO at Validea Capital, and is also the co-host of the popular Excess Returns podcast. He joined us for an awesome conversation that included topics such as:

• The different styles for interviewing guests –preparation vs improvisation
• Factor models to decompose the returns achieved by famed managers
• Peter Lynch and the real mystery behind his track-record
• Momentum vs return chasing
• Cycles, underperformance and the benefits of combining different methodologies
• The hard problem of factor allocation based on historical returns
• A pragmatic approach that earned Jack his Twitter Handle – @practicalquant
• Education, discipline and adherence
• The incredibly long winter experienced by the value factor – is it over
• Behavioral vulnerabilities – knowing about them doesn’t dampen their effect
• Holding minimum amounts of cash – the additional tail-wind for indexed products
• Tracking error can be more painful than the risk of losses
• Why finding your like-minded tribe is a crucial component of sticking with a strategy

Thank you for watching and listening. See you next week.

 

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* and Richard Laterman of ReSolve Asset Management.

 

*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.