I honestly do not know why the “holy s*&t Target Date Funds must have had an awful period” just came to my mind. I wrote a post on the infamous the Cederburg’s paper, A Critical Assessment of Lifecycle Investment Advice, not a long time ago. One of the (few?) reasonable Read more…
I wrote an introduction to alternative investments here. Actually, it is more about the risks of alternatives, since the whole blog is about the pros ;). “Catastrophe bonds (or “CAT” bonds) were first introduced to help strengthen reinsurance companies’ balance sheets in the aftermath of Hurricane Andrew in 1992. Hurricane Read more…
A few days ago a reader suggested I check Testfol.io and…I am so glad he did! (another guy on Twitter later told me that their database is not always correct, so ¯\_(ツ)_/¯). When it works, Testfolio is the best of PortfolioVisualizer with the best of PortfolioCharts. PV was constrained by Read more…
In April 2022, I introduced on this blog The Italian Leather Sofa Model Portfolio. As a reminder, here is the portfolio composition: The idea behind the portfolio is stolen from here. The link offers the best explanation to what I think is the most common question related to it, i.e. why Read more…
[yes, I copied this post title from a famous newsletter, what can I say…] Last week Lorenzo Biagi (author, financial advisor and…finfluencer? ;)) posted the following picture, unfortunately without the source links: These two graphs offered him the opportunity to stress how bonds might be unattractive at this point, especially Read more…
“The world’s most sophisticated institutions invest using asset/liability matching strategies to help them properly navigate their liquidity needs over time. Banks, pensions and other large institutions don’t rely on vague “risk profiling” processes or Modern Portfolio Theory and instead use practical asset/liability matching strategies. Retail investors, on the other hand, Read more…
“Managed futures is among the most time-tested of alternative investing styles. Despite origins in commodities futures trading, a heritage made evident by the commodity trading advisor (CTA) moniker that remains in vogue today, the contemporary multi-asset approach to managed futures bears industry roots and institutional adoption spanning back to the Read more…
Universa Investments LP published a paper to challenge the rationale behind the effectiveness of a leveraged diversified portfolio, in particular the infamous 60/40. Universa Investments has always stressed the importance of mitigating the largest drawdownsas the most effective way to improve compound returns over time. However, risk mitigationneeds to be Read more…
A couple of weeks ago, Adam Butler from ReSolve published a white paper called “Managed Futures Carry: A Practitioner’s Guide”. ReSolve AM is Corey Hoffstein’s partner in crime behind the Return Stack concept; they floated on Twitter the idea of stacking carry on top of stocks and I was eager Read more…
Being the one that “works in finance”, and more and more because of this blog, I have been asked for advice*. For this reason, and considering the dumbfounding difference between the state of the financial advisory industry in the US compared to Europe, my mind sometimes wonders why we are Read more…