In this episode, we speak with Unlimited Funds founder Bob Elliott. We discuss the general landscape of the hedge fund industry including the strategies hedge funds employ, whether they add value from a return perspective and if the top performing hedge funds are able to maintain that status over time. We also discuss the challenges of replicating hedge fund returns and Unlimited's unique approach to doing it via the ETF wrapper. In the second half of the interview, we get Bob's take on the current macroeconomic environment, why inflation might be tougher to tame than many think, what the resolution of the debt ceiling issue might mean for markets and a lot more.
00:00 - Intro
02:05 - Bob's biggest lessons from working at Bridgewater
05:49 - What Bob learned from the financial crisis
10:58 - The biggest misconceptions about Bridgewater
13:34 - What does the overall performance of hedge funds look like?
16:08 - The major types of strategies hedge funds employ
20:57 - Replicating hedge fund returns
28:09 - The tax advantage of pursuing hedge fund strategies in an ETF wrapper
30:58 - Is there any value in trying to replicate the top performing hedge funds?
33:29 - Do the top performing hedge funds change over time?
36:18 - How a hedge fund replication strategy fits into an overall portfolio
38:55 - Ignore the marketing consultants on Twitter
40:55 - Bob's take on the current macro environment
46:04 - The challenge of containing inflation
48:48 - The importance of wage growth
52:11 - Are real time inflation tracking websites useful?
57:18 - What does inflation mean for the major asset classes?
01:02:26 - The impact of the debt ceiling resolution on markets
01:05:26 - The challenge of a protracted market downturn
01:08:28 - The one lesson Bob would teach the average investor
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