Episode #458: Bob Elliott, Unlimited Funds – A Macro Masterclass
Guest: Bob Elliott is the CEO & CIO of Unlimited Funds, which using machine learning to create products that replicate the index returns of alternative investments. Previously, he was the Head of Ray Dalio’s Research Team and on the Investment Committee at Bridgewater Associates.
Date Recorded: 11/30/2022 | Run-Time: 1:46:12
Summary: In today’s episode, we touch on rates, the inflationary cycle, the strong US dollar, and how all of these shape his view of the markets and economy as we head into 2023. Then we discuss what strategies are worth looking for alpha in a world where beta is almost free, how he thinks about managers’ performance coming from luck vs. skill, and the benefit of low cost, systematic strategies.
As we wind down, we touch on Bob’s entrance into the ETF space with a great ticker, HFND.
Comments or suggestions? Interested in sponsoring an episode? Email us [email protected]
Links from the Episode:
- 1:22 – Intro
- 2:39 – Welcome to our guest, Bob Elliott
- 3:45 – Bob’s macro approach and lessons from his time at Bridgewater Associates
- 9:01 – Episode #109: Matt Hougan, Bitwise Asset Management
- 9:56 – Low cost beta and the poor performance of the 60/40 portfolio in 2022
- 13:38 – What’s a good amount of alternative assets to have in a portfolio?
- 24:31 – America’s first run in with rapid inflation and how it might unfold
- 31:16 – What the next couple of years might look like inflation-wise
- 35:00 – Initial claims around how fast the labor market will deteriorate
- 40:53 – The trends of inflation outside of the US
- 44:04 – Bob’s perspective on the US dollar remaining so strong despite our macro environment
- 47:30 – What will hit 5% first: CPI or Treasuries?
- 49:54 – Bob’s thoughts on alpha
- 57:06 – Differences between discretionary and systematic alpha
- 1:00:16 – Invest With The House: Hacking The Top Hedge Funds
- 1:02:36 – Systematic approaches he finds interesting and launching his new fund
- 1:07:29 – Active strategies he’s drawn towards and which ones he feels are good
- 1:13:12 – Overview of HNFD
- 1:26:07 – Positioning of hedge funds today
- 1:31:37 – Ideas for future strategies
- 1:36:16 – What’s Bob’s favorite macro data point
- 1:37:25 – Something Bob believes that the majority of his peers don’t
- 1:39:59 – Bob’s most memorable investment
- 1:42:40 – Learn more about Bob; Twitter; unlimitedfunds.com
Transcript:
Coming soon.
