ReSolve Riffs with Bob Elliott on Hedge Fund Replication and Strategies for a Complicated Decade
This week we had the pleasure of speaking with Bob Elliot (who can be found on Twitter @BobEUnlimited), CIO at Unlimited, a new investment firm that launched a hedge fund replication strategy in ETF format. Our conversation included: Bob’s career and especially his years at Bridgewater Associates The synergies between macro research and systematic investing Systems that create discipline and leverage (the non-financial kind) A better sense-making process within an investment framework Why most intuitions are inaccurate Identifying inconsistencies between one’s framework and new data How the signaling power and precision of any variable can change over time Dealing with the scarcity of macro data points within a systematic approach Why there is no such thing as a single most important variable in macro investing No certainty, just a probabilistic range of outcomes Why diversification is one of the fundamental laws of asset management The importance of maximizing the number of independent bets in low signal-to-noise domains Why the starting point for Bob’s personal portfolio is Risk Parity The folly of singularly focusing on the S&P500 Avoid going “all-in” into any single scenario, no matter how compelling the narrative And so much more This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management Inc. *ReSolve Global Inc. refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global Inc. is a registered person with the Cayman Islands Monetary Authority.