Listen on The Move
Jeffrey Sherman, Deputy CIO, DoubleLine Capital joins us for nearly 90 minutes on all things macro and investing, and how he's navigating this bizarre market. Our discussion turns to positioning fixed income, equities, commodities, real assets, as well as getting into the nuts and bolts of how he manages money at DoubleLine Capital.
To begin, Jeffrey talks about his career path [1:27] and then we get into his expectations for the economy, markets, rates, wages, housing and Inflation among other things [6:20], Jeffrey's cat make a rare appearance at [6:42] and then Jeffrey goes on to explain why the inflation picture is much more difficult to distill [13:04]. Jeffrey Sherman points to where investors can think about repositioning some of their 40% fixed income sleeve [15:14] for example, right now "It's not a High Yield at that point, it's just yield.," says Sherman.[19:07] Our conversation then turns to commodities [21:20] the bottlenecks [28:19], backwardation [30:00], as well as precious metals [32:23], and ESG's role [34:30]. We go on to talk about Jeffrey's CAPE ratio based equity strategy [43:09], and what insights and signals he's getting from the market, then Jeffrey talks about why growth stocks don't benefit from the rising rates environment, as well as his concept of scarcity, growth and duration of stocks [47:26]. At this point, [56:09] we ask Jeffrey to explain how his unique and successful CAPE ratio equity/bond strategy works, and how he's been able to deliver alpha.[1:03:39] If you're wondering at all about creative ways of how to think about constructing portfolios that express the needs and objectives and risk management of all types of investors our conversation will fill in some of those blanks for you. The conversation then turns to a discussion about the language and jargon game, Smart Alpha, even Cliff Asness, as well as Jeffrey's parting thoughts for advisors [1:15:07].
This podcast was recorded September 20, 2021
Where to find Jeffrey Sherman, DoubleLine Capital
Where to find the Raise Your Average crew:
ReSolve Asset Management - https://investresolve.com/
ReSolve Asset Management Blog - https://investresolve.com/blog/
Mike Philbrick on Linkedin - https://www.linkedin.com/in/michaelphilbrick/
Rodrigo Gordillo on Linkedin - https://www.linkedin.com/in/rodrigogordillo/
Adam Butler on Linkedin - https://www.linkedin.com/in/adamdbutler/
Pierre Daillie on Linkedin - https://www.linkedin.com/in/pierre-daillie-advisoranalyst/
Joseph Lamanna on Linkedin - https://www.linkedin.com/in/josephlamanna/
AdvisorAnalyst.com - https://advisoranalyst.com
"You don't have to be brilliant, just wiser than the other guys, on average, for a long time." Charlie Munger
Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.
We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.
Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)