Mike Newton, VP and Portfolio Manager, RBC Wealth Management, and Jason Mann, CIO at EdgeHill Partners and EHP Funds, join us for a rich conversation on running money at both the retail and institutional levels.

Takeaways

• How was business and what were the investing challenges of the pandemic from a business perspective?

• Mike Newton shares some valuable nuggets on how he organizes and runs his retail wealth management practice.

• How to use model portfolios productively in your practice.

• What are the processes you use to organize your business around?

• Jason Mann talks about his and his firm’s approach to running liquid alternatives, and how he approaches the challenges of portfolio construction and outcome.

• Outlook and opportunities – Mike and Jason talk about how they make decisions invest, and what kinds of investments.

• How do you manage investment risk?

• How are you communicating with clients?

• What are big challenges forward, and what lessons have you learned from this period?

• What sets you apart? What kind of investor are you?

• How do you help your clients overcome their behavioural risks, like selling at the wrong time.

Full Transcript

Ted Seides, founder of Capital Allocators LLC, host of the Capital Allocators Podcast, and author of his second book, Capital Allocators: How the World’s Elite Money Managers Lead and Invest, is our guest on Raise Your Average.

Takeaways

• Ted Seides reminisces about his old friend and mentor, David Swensen, Endowment Fund Manager and CIO, at the Yale Endowment and Yale University, who, sadly, passed away the week before we recorded this episode.

• What he learned from David Swensen during his 5 years at the Yale Endowment Investment Office, and the impact that working with him had on the trajectory of his career and his life.

• What impact David Swensen had on the investment industry and everyone who knew him.

• David Swensen (and team) reportedly added $35-billion in alpha to the Yale Endowment (above and beyond peers and market returns) during 30 years, all the while forgoing insane amounts of compensation.

• Ted shares Swensen’s timeless framework and first principles, and stories from his time with Swensen.

• Swensen created for his own use, what are now called ‘factors’ and ‘factor-based’ approach to diversify portfolios in a time when factors did not exist.

• Where are the edges in the market today?

• What are sophisticated institutions with spending needs/liabilities of 5-8% per yearf doing to get those returns?

• Beyond Diversification and Asset Allocation, what are the 3 new ‘buckets’ institutions are using to construct portfolios?

• Ted’s infamous bet with Warren Buffett – Ted talks about this in some detail.

• The lessons learned from decades interviewing elite money managers

• What are the investment learnings?

• What are the non-investment learnings?

• What are the biggest challenges?

• How are the people evolving?

• What happens in the Investment Offices of elite money managers?

• The 3 Ps and the 3 Cs

• How do you make good allocation decisions? As an individual? As a team?

• How do investment committees decide what to do?

• What are some of the common threads across all allocators?

Full Transcript: https://views.advisoranalyst.com/ted-seides

Watch on Youtube

### Takeaways from Ep. 10 with Corey Hoffstein, CIO, Newfound Research:

• Thinking of diversification in portfolios in terms of three axes: What, How, and When?

• The unintended consequences of ‘timing luck’ (re: ‘when?’ diversificatio)

• How to reduce ‘timing luck’ from portfolios

• How rebalancing premium trumps “timing luck”

• Market distortions caused by the shift from actively managed funds to passive funds

• What are ‘Liquidity Cascades,” and how to ‘smoothe’ against unforeseen destructive convergences of trading activity in markets.’Luck’ is a double-edged sword which, if you’re an allocator of capital, can, more often than not, disadvantage you in investing and asset management.

In our conversation with Corey Hoffstein, CIO, at Boston-based Newfound Research we discuss three axes of diversification:

What, How, and When?

The ‘What?’ aspect involves deciding what you’re going to invest in. ‘How?’ is where you decide what process you’ll use, e.g. stylistic tilts, value, momentum, active, passive, systematic or rules based investing, and factors, etc. The ‘When?,’ aspect is the consideration of timing, or rather, ‘when’ you choose to invest, or rebalance.

While luck plays a role in all three aspects of diversification, of the three aspects, timing is the one that gets the least amount of consideration, and luck seems to have a disproportionately low amount of consideration.

As we discuss timing luck, you realize how the luck of timing, with all else being equal, i.e. multiple managers using, for the sake of argument, the exact same investment strategy, and even the same holdings can wind up experiencing a wide range of investment returns due to the variability of ‘when’ the invested, or rebalanced into given investment holdings.

Corey Hoffstein eloquently describes how advisors, allocators, and other investment professionals can reduce or eliminate timing luck from portfolios, which we know, can more frequently go against us, and instead harvest the ‘rebalancing’ premium. If you’re at all wondering about the ways in which you could establish greater advisor alpha, rebalancing and the rebalancing premium are among the most valuable and manageable ways to do so, and in turn, reduce the occurrence of when ‘timing luck’ can turn against you as an allocator.

Our conversation then turns to Liquidity Cascades, coined by Corey Hoffstein. This is his well researched findings of what have culminated in more recent times as unforeseen destructive convergences of trading activity in markets, how they occur, and what to do to navigate through them. We talk about how to construct tactical portfolios that ‘smoothe’ out the heavy drawdowns across financial markets, as experienced in Q1 2020.

Full transcript: Coming soon

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Where to find Corey Hoffstein:

Corey Hoffstein on Linkedin

Corey Hoffstein on Twitter

Newfound Research

Newfound Research on Linkedin

Where to find the Raise Your Average crew:

ReSolve Asset Management

ReSolve Asset Management Blog

Mike Philbrick

Rodrigo Gordillo

Adam Butler

Pierre Daillie – https://www.linkedin.com/in/pierre-daillie-advisoranalyst/

Our conversation with Arthur Salzer, CEO, CIO, of Northland Wealth Management, one of Canada’s leading wealth management family offices. Arthur Salzer shares his personal history, his early career experiences, and the process and steps he and his firm took under his stewardship which have culminated in Northland Wealth Management’s success as a private, independent wealth manager.

For those of you in the private wealth management business, our conversation is a valuable walk-through on best practices, the fiduciary mindset, due diligence, and his independent research on real estate, real assets, private equity, equities, technology, and cryptocurrencies bitcoin and ether.

Salzer reminds us of the simple truth that if you always put your clients above your firm’s interests, and your own, you can’t go wrong.

We hope you enjoy this conversation.

Full Transcript

Contact:

Arthur Salzer on Linkedin

Northland Wealth Management

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Find the Raise Your Average crew:

ReSolve Asset Management –

ReSolve Asset Management Blog

Mike Philbrick on Linkedin

Rodrigo Gordillo on Linkedin

Adam Butler on Linkedin

Pierre Daillie on Linkedin

AdvisorAnalyst.com

Our conversation with three thought leaders on responsible investing, Deborah Debas, Senior Responsible Investing Specialist at Desjardins, Pasquale Posteraro, Portfolio Manager, Equities, at Desjardins Global Asset Management, and Nicola Fritz, Portfolio Specialist, IMPAX Asset Management.

We discuss three fundamental investment dimensions of responsible investing through the ESG lens: Risk, Reward, and Impact. Pasquale Posteraro and Nicola Fritz provide deep dive insight into how the overlay of active portfolio manager and shareholder engagement is having a collaborative impact on identifying environmental, social and governance risks, how interaction between investee companies and investors is leading to progressive corporate responsibility, and how that mitigates risk substantially for investors.

Deborah Debas provides valuable insight on how advisors can be more proactive vis-à-vis responsible investing with their clients. Current research shows that two-thirds of retail investors are wanting to make sure their investments have more meaningful impact, but that only a small minority of 16% of advisors are being proactive with their clients about ESG and responsible investing. We delve into some interesting perspectives on how advisors can fulfill some, if not all, of their clients’ expectations – the bottom line here is that being proactive could have a meaningful impact on advisors’ relationships with their clients’ successors.

Links / Resources:

Desjardins Responsible Investing

*Desjardins Responsible Investing Certification Program and Training

Desjardins Webcasts – Continuing Education – 5.5 IIROC Credits available or 6.25 CE Credits (The Institute)

Contacts:

Deborah Debas, Desjardins on Linkedin

Pasquale Posteraro, Desjardins Global Asset Management on Linkedin

Nicola Fritz, IMPAX Asset Management on Linkedin

Full Transcript: https://advisoranalyst.com/2021/06/17/ep-67-deborah-debas-pasquale-posteraro-nicola-fritz-dgam.html/