Our guests are Alex Shahidi, and Damien Bisserier, both Managing Partners and Co-Chief Investment Officers at Evoke Advisors. Evoke is a $20 billion Registered Investment Advisor based in L.A. They are also well-known as the portfolio managers of the Risk Parity ETF (RPAR:NYSE).
This is ordinarily a fairly complicated topic to discuss, however, Alex and Damien have clearly found a very layperson-friendly way to explain how to construct robust and resilient 'all-weather' portfolios that can profit and preserve capital in all economic and market climates.
In our conversation, Shahidi and Bisserier outline how they construct their portfolios, what are the basic components of their portfolios, and why. They explain the why each asset type behaves and interplays with the other three in the context of four main asset categories, and how they perform through extreme market events.
What you can expect to take away from this, assuming you make the time to listen to the whole conversation, is how you can construct a portfolio that can keep you and your clients invested, and can keep you from potentially losing your heads, behaviourally, during events like the March 2020 Pandemic 40% drawdown.
If the key to long term investment success is to get investment selection and risk budgeting correct, so you, as an investor, and your clients, as investors can stay fully invested through market crashes, economic events, and 'black swans', then "Balanced Asset Allocation" by definition, is seriously worth your consideration. By a country-mile, the 2020 drawdown in the value of almost all risk assets, served as an inflection point which will define how successful investors will be from that moment in time forward.
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Alex Shahidi, Co-CIO, Managing Director, Evoke Advisors
Damien Bisserier, Co-CIO, Managing Director, Evoke Advisors
Mike Philbrick, CEO, ReSolve Asset Management SEZC