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…
“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…
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…
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…
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. Read more…
In the years between the end of high school and the beginning of university, I tried to participate in Magic the Gathering Pro Tour. How to define “trying” is pretty tricky. I was dedicating a lot of time to it, skipping lessons here and there, but I was not skipping Read more…
I cannot recall how long ago I discovered @NomadicSamuel on Twitter. My definition of “Canadian Travel Blogger” might not be 100% accurate but take it as is; he’s a great chap who, for some reason, got the finance bug along his journey. In particular, he got the Picture Perfect Portfolio Read more…
A few weeks ago I listened to a great episode of the Rational Reminder podcast about Professor Cederburg’s latest research. A research that seems to disrupt traditional thinking in the field of Lifecycle Investment Advice. Two main things are considered common knowledge in the field that the paper disrupts: one Read more…