While we have played defense with concepts such as equal risk contribution, which help avoid big losses and mitigate sequence of returns risk, it’s time to play some offense. As we seek to compound our portfolios in the highest possible number of positive rolling periods, we need to better understand where returns are really coming from and how sustainable than can be.
On this 6th day, we will investigate the many ways to harvest excess returns from investment factors (also known as style premia), and how to avoid being specifically wrong in your approach.
Podcast series re-posted with permission from Resolve Asset Management. Click here to see the original post.