Ep 85 Return Stacking: Strategies for Overcoming a Low Return Environment

What this episode covers

Adam Butler, CIO and Rodrigo Gordillo, President, of ReSolve Asset Management Global join Pierre Daillie, from AdvisorAnalyst.com for an amazing discussion about ReSolve's latest research paper, "Return Stacking: Strategies for Overcoming a Low-Return Environment." In our discussion we cover the following points on this novel investment concept of portfolio construction: - Stretched valuations in equities and fixed income imply depressed returns and higher potential volatility for traditional portfolios. - Reaching for yield or increasing exposure to pro-cyclical assets may help compensate for low expected returns, but can increase portfolio risk. - Reducing exposure to equities and bonds to accommodate non-correlated assets or alternative strategies may reduce risk, but at the expense of lower potential returns and painful tracking error. - We introduce a novel investment concept, accessible to all investors, which is designed to seek higher returns with less risk and low tracking error by using new products which, in combination, can provide more than $1 of exposure for every dollar invested. - The proposed solution harnesses the full potential of traditional portfolios plus the opportunity for higher returns and risk reduction from non-correlated investments. - This capital efficiency allows for the introduction of non-correlated return streams that stack on top of core portfolio exposures. - We show how to maximize “Return Stacking” opportunities by choosing alternative fund managers already engaging in capital efficient strategies. You can download the paper here (https://investresolve.com/return-stacking-strategies-for-overcoming-a-low-return-environment-lp/). ***** Where to find the Raise Your Average crew: ReSolve Asset Management - https://investresolve.com/ ReSolve Asset Management Blog - https://investresolve.com/blog/ Mike Philbrick - https://www.linkedin.com/in/michaelphilbrick/ Rodrigo Gordillo - https://www.linkedin.com/in/rodrigogordillo/ Adam Butler - https://www.linkedin.com/in/adamdbutler/ Pierre Daillie - https://www.linkedin.com/in/pierre-daillie-advisoranalyst/ Joseph Lamanna - https://www.linkedin.com/in/josephlamanna/ AdvisorAnalyst.com - https://advisoranalyst.com ***** "You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie Munger Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars. We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours. Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)