Why Beating the Market Isn’t Enough for Investment Managers | Corey Hoffstein

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Corey Hoffstein, CEO and CIO of Newfound Research and co-founder and PM of Return Stacked ETFs, joins OPM to discuss his journey in the investment management business. He argues that beating the market is a commoditized value proposition and that investment managers need to solve other problems for their clients to attract assets. He also discusses his experience licensing research to other asset managers, his belief that distribution is the key question of success in the asset management business, and how quantitative research and other forms of content like podcasts and social media can help build brand awareness.

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Timestamps

00:00 Intro

00:27 Fiscal AI

01:16 The Difference Between Quant and Systematic Investing

03:18 Can Market Bubbles Be Measured?

05:05 Is Market Timing a Good Bet?

09:31 Evolving Risk Premia and Market Inefficiencies

16:41 Fiscal AI

18:20 Beginnings in Investment Management

23:04 Licensing Indexes to Other Managers

27:35 Providing Education Materials

31:26 Moving Into Asset Management

36:47 Evolving into Current Strategies

40:06 Thinking About the Investment Product Wrapper

43:11 Asset Management vs Investment Management

47:27 Solving Behavioral Finance Problems and Market Problems

51:28 Different Ways of Using Leverage

52:41 Knowing Your Client Base Isn’t Institutional

55:45 Content Creation and Brand Building

59:27 Growing an Audience: What Financial Content Goes Viral?

01:04:27 Dealing with Compliance and Education

01:07:22 How To Read and Interpret Quantitative Research as a Normie

01:12:22 How Is AI Being Used by Quants?

01:15:48 Conclusion