E5. Diversification 2.0: Mastering the Art of Portable Alpha
Portable alpha (or as we like to call it: Return Stacking) has become increasingly popular in the financial media (including recent notes from industry giants like BlackRock, Russell Investments, and AQR) but many advisors are left asking: What does portable alpha mean? How might it benefit clients? How can I implement it? At Return Stacked Portfolio Solutions we have made it our mission to thoughtfully and transparently help allocate into a portable alpha framework for client portfolios. Join us for this deep dive podcast with Corey Hoffstein, CIO of Newfound Research, and Rodrigo Gordillo, President and Portfolio Manager at ReSolve Asset Management Global.
Key Points
- Portable alpha strategies allow investors to pursue excess returns by separating beta from alpha and layering diversified alternative investments on top of core asset exposures.
- Return stacking can mitigate behavioral biases and improve portfolio diversification by adding rather than replacing traditional stock and bond allocations with alternative strategies.
- Effective implementation of portable alpha and return stacking involves using pre-stacked fund solutions or capital-efficient strategies, ensuring liquidity, and maintaining a prudent safety buffer to manage risks.
Chapters
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1:11 | |
2:00 | |
5:20 | |
6:57 | |
10:49 | |
12:16 | |
19:32 | |
23:39 | |
27:16 | |
31:19 | |
35:06 | |
40:09 | |
41:23 | |
45:11 | |
49:19 | |
52:06 | |
55:23 | |
58:07 | |
1:00:18 | |
1:00:47 | |
1:02:01 |
Transcript
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