Today we are joined by Bob Elliott as he discusses how investing in hedge funds can be for everyone! Elliott highlighted the traditional "two-and-twenty" fee structure, common in hedge funds, private equity, and other alternative assets, which can significantly erode investor returns. His firm aims to replicate these strategies, including equity long-short and global macro, using advanced machine learning to infer hedge fund positions from return data, making them accessible at lower fees for the average investor. Today we discuss...
- Bob's focus to bring low-cost indexing to the world of two-and-twenty, similar to the impact of stock and bond indexing.
- Hedge fund strategies, despite being expensive, offer good returns with lower volatility and drawdowns compared to stocks.
- Various hedge fund strategies include equity long-short, global macro, fixed income, and emerging market strategies.
- Real-time performance data helps in understanding and replicating hedge fund strategies.
- The current economic cycle is income-driven rather than credit-driven, making it more durable to rising interest rates.
- Overvaluation and high expectations suggest that now may not be the best time to invest heavily in stocks.
- The similarities between the current period and the 1970s highlight the importance of diversified portfolios.
- Factors like de-globalization, geopolitical tensions, and inflationary pressures could influence future economic dynamics.
- Volatility in market expectations and the reality of economic conditions contribute to the current buoyant market despite high interest rates.
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Today's Guest: Bob Elliot
Bob Elliott is a macro investor with decades of experience, including being a Senior Investment Executive at the world's largest hedge fund, Bridgewater Associates, where he worked for 13 years and created many of the strategies in the flagship Pure Alpha fund. Bob also held pivotal positions in other companies, including General Manager and Head of Venture Capital at CircleUp, and as a Head of Commercial Innovation at Roivant Sciences. In early 2022, Elliott started Unlimited, a startup ETF company making diversified, low cost index ETFs of 2&20 investment strategies available to every investor. Its first product is the $HFND ETF, is one of the fastest growing actively managed independent ETF launches of the last few years.
Bob's Online Presence:
Today's Panelists
Phil Weiss | Apprise Wealth Management
Kirk Chisholm | Innovative Advisory Group