Investment Wisdom Podcast – Day 10 of 12

How Thoughtful Portfolio Optimization Techniques can be a Total Game Changer for Portfolio Results

Adam Butler, CFA, CAIA
Adam Butler is Chief Investment Officer of ReSolve Asset Management, sub-advisor to an alternative allocation strategy at Rational Funds. He manages ETF and futures based strategies including a global risk parity ETF, two Adaptive Asset Allocation funds, and a multi-strategy hedge fund. Adam is also author of the book Adaptive Asset Allocation: Dynamic Global Portfolios to Profit in Good Times and is ranked in the top 1% of authors by paper downloads on SSRN. He has authored over a dozen papers and dozens of articles on asset allocation; factor investing; quantitative methods; and portfolio optimization. Adam holds both CFA and CAIA charters and appears on BNN Bloomberg and CNBC.

The Lords of finance have somehow convinced investors that “simple” always beats “complex” in markets. But this is rubbish.

The fact is every portfolio – even so-called passive portfolio – express very active beliefs about how markets function, and relationships between risk and return. It’s critical to understand these relationships to choose the optimal method of portfolio formation. Many common techniques such as market cap and equal weighting are profoundly sub-optimal in practice!

In this episode the guys discuss ReSolve’s portfolio optimization article series and describe why appropriate portfolio optimization can act as a powerful force-multiplier on long-term performance.

Podcast series re-posted with permission from Resolve Asset Management.  Click here to see the original post.