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.
