Excess Returns Corey Hoffstein and Ben Hunt | PNL For a Purpose
May 9, 2024
Investing experts Corey Hoffstein and Ben Hunt discuss strategic risk management, inflation analysis, and the illusion of a mechanistic economy. They delve into earning premiums, diversifying investments, and understanding inflation through human expectations. The podcast also covers Japan's economic challenges, wage increases, and analyzing economic narratives.
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Diversification Value
- Diversify cheap data as you would expensive alpha.
- Don't overlook diversifying beta; it's valuable and often has higher conviction.
Diversification Forms
- Diversification has multiple forms: what you invest in, how you invest, and when.
- Diversify investment processes and rebalance timing to reduce uncompensated risk.
Diversification Limits
- Diversification has limits; it cannot eliminate all risk.
- Expect peaks and valleys in P&L; they are natural components of return.