“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
“you do not eat risk-adjusted returns” How many times I have heard it. Well, not literally like this because, if you are able to frame it this way, you know it is not 100% true. Usually, it comes in the form of “stocks generate higher returns than that”. Meaning, why Read more
Warning: this might be a self-serving post. A juice of pure confirmation bias. The comfy blanket I look for when I am scared. You probably know my model portfolio (and if do not, click on the link ;)). 66% of it, or 100% depending on how you perceive it, is Read more
More than three years ago I wrote this post about SONG, a closed-end fund listed in London that invests in music royalties. I would not explain again why I think investing in music royalties is a good idea, if you are curious, read that post. Many things happened in these Read more
If you are reading this blog, you already know who Nassim Nicholas Taleb is. In his book The Black Swan, he proposed the idea of the “barbell portfolio” as a way to manage risk in investment strategies. The concept draws inspiration from the structure of a barbell, where most of Read more
What’s the risk that the FED next move would be a rate increase? I just listened to The Compound and Friends podcast and someone mentioned this. I do not think is a far-fetched idea, considering that we had three months of increasing CPI above 3%. Do you remember all those Read more
Last week I published the quarterly update on the TILS model portfolio: it did 7.41% in just three months, a great result (yes yes, it can give it all back even faster but let me enjoy it for a bit). A few days later, it was confirmation bias time. The Read more