The conversation dives deep into several key topics:
How to effectively communicate complex investment strategies to clients
Why the narrative around managed futures is just as important as their performance
The challenges of getting investors to adopt alternative strategies despite their clear statistical benefits
How Dynamic Beta replicates hedge fund strategies in a cost-effective ETF wrapper
The importance of simplicity in investment strategies and why complexity isn't always better
Andrew also discusses the evolution of the ETF landscape, the role of artificial intelligence in investment management, and why maintaining a steady, unchanging strategy has been crucial to his firm's success. Whether you're an investment professional or individual investor, this discussion offers valuable perspectives on portfolio diversification and the future of alternative investments.
0:00 - Introduction and overview of managed futures discussion
1:03 - Discussion of Andrew's billion-dollar strategy and lessons learned
3:06 - Why the liquid alts world has underperformed
4:14 - The "60-40 is broken" conversation with advisors
6:34 - How managed futures "shoots itself in the foot" with complexity
9:23 - Using simple language vs technical jargon
12:15 - Why model portfolios need nimbleness
14:16 - Managed futures as a "beacon of green in a sea of red"
17:28 - The challenge of where to source money for managed futures
22:17 - Discussion of target date funds and passive strategies
25:56 - How to evaluate alternative ETFs
35:23 - Managing client psychology around line item risk
42:06 - The importance of avoiding surprises in alternative investments
43:33 - Deep dive into strategy construction and trend following
49:32 - How institutional inertia creates opportunities
52:17 - Why they don't change their strategy
56:11 - Creating narratives around portfolio shifts
1:01:16 - Thoughts on AI in investment management
1:04:16 - Why simple usually works better in investing
1:06:42 - Closing remarks and how to follow the hosts
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