Is now the time to ditch stocks and buy bonds? Gold? Should you just go to cash? These types of asset allocation decisions are hard enough in the calmest of times – and downright impossible when overwhelmed with fear and panic in times like the past few weeks as stocks have given back a good chunk of their 2019 gains.
If only there were a way to automate those asset allocation decisions, with reams and reams of academic rigor and research behind the algorithmic allocation models. That sure seems like it would be a better way to approach it, and we were lucky to sit down with the smart folks at ReSolve Asset Management, who pretty much do just that, for a great podcast episode.
ReSolve is a systematic asset manager out of Toronto focusing on unique and advanced ways of implementing global asset allocation to generate alpha. In fact, they think of themselves as having a sort of Alpha factory with specific inputs and processes to output the desired product (risk adjusted returns):
ReSolve operates managed accounts, private funds, and a mutual fund (RDMIX); using varying automated investment and allocation strategies; including flavors and ensembles of trend following, carry, seasonality, skewness, behavioral arbitrage, and AI/machine learning informed “alpha buckets”.
In this episode, we sit down with Rodrigo Gordillo, Adam Butler, & Mike Philbrick talking about filling in the gaps with mid-frequency trading, learning the ins-and-outs of staying low-carb (while maintaining thick skin), how to build the right team using zebras in a herd of deer, winning the content game, and much more.
For more on ReSolve Asset management, visit their website, check out their Twitter, and take a listen to their very own podcast – Gestault University.
Find the full episode links of The Derivative below: