Replicating Hedge Fund Returns at ETF Prices | Bob Elliott, HFND

Bob Elliott, co-founder and CIO of Unlimited, returns to break down how his firm is bringing Vanguard-style indexing to the hedge fund world. After spending the bulk of his career at Bridgewater building proprietary investment strategies, Bob launched Unlimited on two truths the industry wouldn't say out loud — institutional hedge funds are largely no better than their peers over time, and managers take nearly all the alpha in fees. His solution: diversify across managers, cut fees to a fraction, and deliver it all through liquid ETFs.We get into the nuts and bolts of how Unlimited's third-generation replication technology actually works, why Bayesian machine learning picks up tactical alpha that older rolling regression approaches miss, and what separates strategies built by real money managers from those designed by academics and technologists. Bob walks through his full product suite — HFND, HFEQ, HFMF, and HFGM — explains why the 2X target return products are resonating with advisors, and makes the case for moving from 60-40 to 50-30-20. We also talk about the realities of growing a boutique ETF business on a guerrilla marketing budget and why the biggest risk for startup issuers is spending too much too fast.Learn more at unlimitedetfs.com. Read Bob's Substack "Non-Consensus" and follow him on social media at BobEUnlimited.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast