Episode 129

full
Published on:

17th Jun 2022

ReSolve Riffs with the ReSolve Crew on Optimizing Risk Parity and Stacking Alphas

For this week’s special episode, Adam, Mike, Rodrigo and Richard gathered to explore the building blocks of an ultimate All Weather portfolio. Our conversation included:

  • The blind spots of the 60/40 stock-bond portfolio
  • Regime dependency and economic shocks
  • Diversifiable versus non-diversifiable risks
  • How to create an optimal portfolio that can navigate most regimes
  • Why Global Risk Parity is the natural starting point for any investor with a long-term view
  • Different ways to implement Risk Parity
  • Time horizons and rebalancing
  • Tactical tilts and the beta-alpha continuum
  • Yield as another proxy for risk
  • Global Carry as a complement to risk parity beta
  • The Existence Proof as a threat to alpha
  • Trend following, seasonality, carry, counter-trend, relative value and volatility
  • Why one man’s alpha can sometimes be another’s (smart) beta
  • Ensembles and thinking beyond traditional factors
  • Considering speed and size
  • And much more

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 Inc.

 

*ReSolve Global Inc. 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 Inc. is a registered person with the Cayman Islands Monetary Authority.

 

Next Episode All Episodes Previous Episode

Listen for free

Show artwork for Resolve Riffs Investment Podcast

About the Podcast

Resolve Riffs Investment Podcast
Welcome to ReSolve Riffs Investment Podcast, hosted by the team at ReSolve Global*, where evidence inspires confidence.
These podcasts will dig deep to uncover investment truths and life hacks you won’t find in the mainstream media, covering topics that appeal to left-brained robots, right-brained poets and everyone in between. In this show we interview deep thinkers in the world of quantitative finance such as Larry Swedroe, Meb Faber and many more, all with the goal of helping you reach excellence. Welcome to the journey.


*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.