Investment Wisdom Podcast – Day 4 of 12

Pushing the Diversification Frontier with True Factor Investing

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.

On our fourth day, we add yet another layer of diversity onto our building blocks. While diversity across global asset-classes is a useful first step, there are other aspects of the portfolio construction and rebalancing processes that can push the diversification boundaries even further and help improve risk-adjusted performance.

As described in our popular “Buffet Bet” blog post, these well-known factors (or ‘smart Betas’) can provide further uncorrelated return drivers to help smoothen the long-term path of invested capital.

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