Get Stacked Investment Podcast
Join Corey Hoffstein and Rodrigo Gordillo as they explore the world of return stacking with insights from leading experts and real-world applications. Break away from traditional portfolio construction and rethink successful investing.
E2. Secrets of Private Equity, Cocoa Trends & Optimal CTA Portfolio Weights
Corey Hoffstein, Adam Butler, and Michael Philbrick join Rodrigo Gordillo to discuss trend replication, private equity's role in modern portfolios, and the impact of large AUM on trend following. They explore balancing alpha generation with risk management, optimal allocation, and leveraging through treasury futures.
Key Points
- Private equity returns are often equivalent to 150% levered equity returns, providing implicit leverage without additional risk for institutional investors.
- Trend replication strategies can effectively capture significant market trends even with a limited number of futures contracts, as seen with the performance of trend-following CTAs during the recent cocoa market rally.
- Futures contracts provide the total return of the underlying asset minus the embedded financing cost, making them an efficient tool for implementing leverage in investment strategies.
Chapters
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| 8:35 | |
| 21:09 | |
| 25:55 | |
| 32:28 | |
| 38:16 | |
| 53:25 | |
| 54:54 |
Transcript
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