Investment Wisdom Podcast – Day 5 of 12

The Impact of Sequence of Returns Risk and How to Minimize it

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.

After creating a theoretical framework with an almost obsessive focus on diversification and risk-adjusted returns, we bring you case studies of global asset classes throughout history that will demonstrate the importance of not depending on (often lucky) predictions.

As we invest over the next few decades, we should aim to protect our sequence of positive returns by preventing the “maniacs from taking over the asylum”. This is where the rubber begins to meet the road. Welcome to Day 5.

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