126 episodes

The official podcast of AdvisorAnalyst.com, publisher of actionable market and investment insight, commentary, analysis and practice management for investment professionals and investors.

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The official podcast of AdvisorAnalyst.com, publisher of actionable market and investment insight, commentary, analysis and practice management for investment professionals and investors.

    45 What Diversification Play Tackles a Stagflation Blitz? The HRAA Playbook

    45 What Diversification Play Tackles a Stagflation Blitz? The HRAA Playbook

    Our guests on this episode are our co-hosts , Mike Philbrick and Rodrigo Gordillo. They are principals at ReSolve Asset Management Global. They happen to also be the sub-advisors to the Horizons ReSolve Adaptive Asset Allocation ETF ( HRAA:TSX ).

    We talk about the chronic problem that the majority of us investors are UNDER-DIVERSIFIED. Profoundly under-diversified.

    Why? Diversifiers are either 'killing it' or 'killing you.'

    The problem is that effective uncorrelated diversifiers underperform during benign market periods, and therefore wind up being under-invested during volatile down market periods. This time has been no exception, as most investors have discovered.

    The past two years' conversations on this show with some of the industry's most interesting and successful thought leaders has been so highly instructive on this topic.It's become obvious in all these conversations is that our fellow hosts Mike, Adam, and Rodrigo from ReSolve Asset Management not only love to talk about what they do, i.e. what they're their cooking – they eat their own cooking.

    So it's fitting that today we're going to be talking thoughtfully about how ReSolve 'eats the free lunch' of global diversification.

    Having been in your shoes, as investors, as former advisors, and then as portfolio managers, Mike, Adam and Rodrigo and their firm, have been through multiple major market cycles. They each brought their personal experience and learnings of the last 20-30 years to the table and devoted the last 10-12 years to developing versions of what they do now at ReSolve Asset Management, in the strategies they manage and sub-advise.

    They co-founded ReSolve Asset Management in order to break out on their own in September 2015 and began the process of offering their investment strategies to investors via separately managed accounts, mutual funds, hedge funds, and ETFs (HRAA is sponsored by Horizons ETFs) in both the U.S. and Canada.

    The last three years, which have seen some the most volatile and unprecedented bouts of uncertainty and market fluctuations beginning with the Pandemic, and culminating in this years violent reaction to inflation volatility and rising policy rates, have been a rock-solid proving ground for ReSolve's strategies.

    YTD to September 21, 2022, HRAA has a positive return – during the same period that has seen the traditional assets of 60:40 portfolios get trounced, as inflation volatility, market volatility, and rising rates have moved sharply against both stock and bond values, broadly and at the same time.

    We hope you enjoy our conversation – we get to the bottom of these questions:

    – Where are we in the life-span of the last cycle's winning 60:40 portfolio model?
    – What are some diversifiers investors have been reaching for?
    – What is different about ReSolve Asset Management's investment approach?
    – What is HRAA?
    – How is HRAA possible?
    – What is ReSolve's Adaptive Asset Allocation framework?
    – How does it work?
    – What can you learn from it?
    – How does ReSolve manage risk?
    – How does the strategy provide tail risk protection?
    – How can you begin to think about risk-balanced adaptive asset allocation and portfolio diversification?
    – Where and how does it fit in a portfolio?


    =========================================
    Where to find the Raise Your Average crew:
    =========================================

    HRAA - Horizons ReSolve Adaptive Asset Allocation ETF
    ReSolve Asset Management
    ReSolve Asset Management Blog
    Mike Philbrick on Linkedin
    Rodrigo Gordillo on Linkedin
    Adam Butler on Linkedin

    Pierre Daillie on Linkedin
    Joseph Lamanna on Linkedin
    AdvisorAnalyst.com

    =========================================

    "You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie Munger

    Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments ga

    • 1 hr 32 min
    126 Jason Buck: Defensive Diversification & The Cockroach Portfolio

    126 Jason Buck: Defensive Diversification & The Cockroach Portfolio

    Jason Buck, Co-Founder & CIO, Mutiny Funds joins us for a chat that may have the power to change your perspective on diversification and risk management, return and long term investing outcomes.

    When unexpected major events occur, such as this year's stock and bond market rout in H122, where most or all of your supposedly diversified investments became correlated, and headed sharply to the downside, you may have been left feeling with the need to consider using a portfolio designed to protect against exogenous (COVID-related supply chain disruptions, Ukraine War), economic (inflation, rates), and or Black Swan events. We're all too accustomed with using 'offensive' assets like stocks and bonds. There is no doubt, however, that we are definitely NOT accustomed to making use of 'defensive' assets and defensive strategies that are structurally uncorrelated or negatively correlated, that can provide ballast protection and real 'balance'. What are defensive assets and defensive strategies?

    Jason Buck and his partner at Mutiny Fund have been thinking about this question for a long time and have created one such portfolio.

    We discuss:
    • Diversification, both offensive and defensive
    • Tail Hedging
    • Behavioural issues around tail risk and hedging
    • Ego doubt and destruction
    • Capital Efficiency
    • The 'Cockroach' Portfolio

    =================================
    Where to find Jason Buck, Mutiny Funds
    =================================

    Jason Buck on Twitter
    Jason Buck on Linkedin
    Mutiny Funds

    ==================================
    Where to find the Raise Your Average crew:
    ==================================

    ReSolve Asset Management
    ReSolve Asset Management Blog
    Mike Philbrick on Linkedin
    Rodrigo Gordillo on Linkedin
    Adam Butler on Linkedin

    Pierre Daillie on Linkedin
    Joseph Lamanna on Linkedin
    AdvisorAnalyst.com


    ******

    "You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie Munger

    Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.

    We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.

    Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

    • 1 hr 28 min
    125 Dividend Payers and Growers: Resilient During Periods of High Inflation and Rising Rates

    125 Dividend Payers and Growers: Resilient During Periods of High Inflation and Rising Rates

    We had the pleasure of interviewing Sri Iyer, Managing Director and Head of i3 Investments™ recently about what is, in our humble opinion, a seminal conversation on Dividend Investing.

    2022 has been a challenging year so far for most investors. Both stock prices and bond prices have taken a beating, marking perhaps the abrupt end to a 40-year period of gains like no other, and a rate of inflation not seen since 1983.

    It's time for advisors and investors to take steps to immunize their portfolios against the challenges of the current environment of inflation volatility and rising interest rates.

    Investing in companies with consistent and growing dividends can provide core building blocks to grow your capital while managing risk in the current environment and over the long term, regardless of changing market conditions, including during periods of high inflation and rising rates.

    Sri Iyer is among a minority of leading portfolio managers who have successfully devoted their lives to a profound study and implementation of quantitative approaches to the sphere of dividend investing that for the better part of the last two decades, has gotten less notice by most investors.

    This is most likely because since the GFC (c. 2008-9), growth stocks, or rather, 'high duration' stocks stole the show. During that time Iyer and his team at Guardian Capital sharpened their dividend investing skates to more accurately identify which companies had dividend paying strength and sustainability, and those which had a high probability of growing their dividends; and, on the credit risk management side, they also handily determined a methodology they could implement to identify dividend cutters.

    Beginning in 2017, Iyer and his team began their dive into big 'alternative sources' data with the assistance of artificial intelligence (AI) to sift through tens of millions of points of abstract and empirical statistics, the objective being to bring them to the end zone (think football) of the dividend stock selection and risk management process.

    Listen in as we wend our way through what is a truly seminal deep-dive into what is the impetus of seeking success at dividend investing in the first place. Even if you believe you understand what are the sound premises of dividend investing, this is truly time well spent on a subject you may be under-appreciating right about now.

    Where to find Sri Iyer, Guardian Capital:

    Srikanth Iyer on Linkedin
    Guardian Capital LP




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    • 1 hr 15 min
    124 Meb Faber: The Problem with Long Term Investing

    124 Meb Faber: The Problem with Long Term Investing

    Given the year 2022 has shaped up to be so far, we thought this would be a great time to catch up with one of the true luminaries of modern investing to talk about he wraps his head around successful long-term investing.

    Meb Faber, illustrious co-founder and CIO at Cambria Asset Management joins Pierre and Adam to catch up on markets and investing and how he has hacked the long term investing problem.

    Our conversation begins with a famous quote from another investing legend and goes from there. We get into an elemental discussion about what investors can begin to do now, where to invest, where to diversify, and how to think of setting themselves up for success going forward.

    Highlights, we discuss:

    • Lots of people say they are long term investors, but...
    • how do you set yourself for long term investing success
    • what's the biggest problem in long-term investing – why?
    • how can you set yourself up (what investments?) so that you can remain a long-term investor no matter what happens (like this year)
    • How do you transition from 60/40 to something elementally more durable?
    • What are the current market's portfolio building blocks – why?
    • How much time is required?
    • What are the easy hurdles, the structural basic investments that should be added?
    • What to invest to diverge from hope that the past bubble will recover
    • Is 60:40 over?
    • 'Trinity' portfolio construction
    • Is technology providing better recipes?
    • What are the ingredients of a portfolio that allows you to remain invested no matter what happens?
    • Be contrarian – What is contrarian?
    • What's the way around inflation and higher rates
    • What is the most contrarian investment you can make today?
    • falling in 'love' with your investments complicates everything
    • what is all that matters in investing over the long term?
    • "To be a good investor, you have to be a good loser."
    •  Question: Assuming no tax repercussions, if you could liquidate your entire portfolio and start over anew, what would you put in your new portfolio?

    =========================
    Where to find Meb Faber
    =========================

    Meb Faber on Linkedin
    Meb Faber on Twitter
    Cambria Investment Management

    =========================================
    Where to find us:
    =========================================

    ReSolve Asset Management
    ReSolve Asset Management Blog
    Mike Philbrick on Linkedin
    Rodrigo Gordillo on Linkedin
    Adam Butler on Linkedin

    Pierre Daillie on Linkedin
    Joseph Lamanna on Linkedin
    AdvisorAnalyst.com

    =========================================

    "You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie Munger

    Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.

    We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.

    Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

    • 1 hr 20 min
    123 The Intended and Unforeseen Opportunities of ESG

    123 The Intended and Unforeseen Opportunities of ESG

    ESG has gathered a lot of steam as an essential and strategic investment component for both returns, with long term positive fundamentals, and risk management.

    Around roughly 1400 studies have found a positive relationship between ESG scores on the one hand and financial returns on the other, whether measured by equity returns or profitability or valuation multiples. Another factor is the cost of capital. Evidence suggests that a better ESG score translates to about a 10 percent lower cost of capital as the RISKS that affect your business, in terms of its ability to operate, are reduced if you have a strong ESG proposition.

    For these reasons, publicly traded companies that are actively implementing ESG in their operations are expected to be granted a valuation and risk premium as a result 'ESG goodwill,' versus those companies doing less.

    Samantha McDonald, Vice President, ESG Research and Engagement, and Jonathan Needham, Vice President & Director, Lead of ETF Distribution, at TD Asset Management Inc. (TDAM), join us to talk about the approach that TDAM is taking to ESG, as well as the suite of TD ESG ETFs. These ETFs invest in stocks and bonds that have strong ESG metrics and leverage exclusive Morningstar Indexes and research from Sustainalytics, a Morningstar® company and a globally recognized leader in ESG risk ratings and research.

    Highlights include:

    • How do you define your view on ESG?

    • How TDAM defines a gradual approach vs. a binary approach to ESG – Engagement vs. divestment?

    • How TDAM's shareholder engagement on behalf of investors' alignments works

      • The Aha! moment for advisors

    • TDAM's ESG ETFs screening methodology - sector-neutral Morningstar Sustainability Indexes

      • market-like exposure with significantly lower ESG risk, relative to benchmarks

    • Position sizing? Benchmark replacements.

    • Silver linings? – Taking advantage of tax-loss harvesting to increase pure beta ESG exposure.

    • How do Morningstar Sustainable Indexes navigate geo-political concerns?

    • Investors can now also get beta exposure to ESG corporate bond indexes

    highest quality, high liquidity investment grade corporate credits for yield

    • Building blocks, maximum diversification, low or no tracking error.

    • How do the screening rules work? Any interesting ones?

    • What is greenwashing?


    Where to find our guests:

    Samantha McDonald on Linkedin
    Jonathan Needham on Linkedin

    For more on TDAM ETFs, visit td.com/etfs

    • 46 min
    Ivana Delevska - Investment Thesis for Industrial Technology Stocks

    Ivana Delevska - Investment Thesis for Industrial Technology Stocks

    There's a race going on in the industrial sector to modernize, technologize, compete, as well as de-carbonize.

    Ivana Delevska, Chief Investment Officer, SPEAR Invest, joined us to discuss the her investment thesis and strategy, underlined by her firm's research that following roughly 5 years of underinvestment, industrial companies have significant capital expenditures in front of them to catch up on, which will lead to greater adoption of industrial technology. We get into the important developments that may make for some outsized opportunities in both the industrial and technology sectors, in the not so distant future.

    Ms. Delevska is the Founder and CIO of SPEAR. She founded the Advisor in 2021 after spending 14 years evaluating and investing in industrial and industrial technology companies.

    Ms. Delevska spent four years covering Multi-Industry companies at Deutsche Bank as a Vice President (2017-2018) and Gordon Haskett as a Director (2018-2021). Prior to that time, she spent 10 years as a Senior Analyst on the buy-side at several long/short hedge fund platforms: Tiger Management, Millennium Management, Citadel Asset Management, and Davidson Kempner.

    Ivana started her career at JP Morgan in the Mergers and
    Acquisitions Group. She graduated from the University of Chicago in 2006 with a BA in Economics.

    Where to find Ivana Delevska and SPEAR Invest:

    Ivana Delevska on Linkedin
    Ivana Delevska on Twitter
    SPEAR Invest for up to date holdings and prospectus

    =========================================
    Where to find the Raise Your Average crew:
    =========================================

    ReSolve Asset Management
    ReSolve Asset Management Blog
    Mike Philbrick on Linkedin
    Rodrigo Gordillo on Linkedin
    Adam Butler on Linkedin

    Pierre Daillie on Linkedin
    Joseph Lamanna on Linkedin
    AdvisorAnalyst.com

    =========================================

    "You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie Munger

    Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.

    We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.

    Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)

    • 1 hr

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