ReSolve Riffs with Phil Huber on the Allocator’s Edge, Alternative Investments and Diversification

Phil Huber is the Chief Investment Officer of Savant Wealth Management, and author of The Allocator's Edge: A Modern Guide to Alternative Investments and the Future of Diversification. He joined us for a great discussion that covered topics such as: Educating advisors on the role of alternative strategies in portfolios and their benefits Recency bias and why “hindsight is 60/40” A different approach to building a truly balanced portfolio Why allocators find it difficult to diversify away from stocks and bonds, despite recognizing how expensive they currently are Dealing with an environment that most financial professionals have never come across in their lives Embracing alternative risk premiums and trying to understand why they work Private equity and hedge funds – the ‘gateway’ alts Niche vs large managers – why size matters and finding the sweet spot Path dependency and sequence of returns Communication challenges and getting clients across the line to embrace a novel approach Line item risk vs portfolio ‘gestalt’ Fiduciary responsibilities, diversification, fees and behavioral considerations Behavioral coaching as an integral part of an advisor’s job A wide range of experiences and unrealistic expectations – why alternative strategies haven’t been fully embraced by retail investors In the absence of value, we negotiate price Overcrowding, passive-flows and factor underperformance The pitfalls of overly conservative assumptions Minimizing regret vs maximizing utility Plan vs planning – a perpetual, ongoing exercise   Thank you for watching and listening. See you next week.   This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.   *ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.