Eric Crittenden on Combining Global Trend & Risk Parity for All Weather Performance

#ReSolveRiffs
As is often the case with sharp and curious minds, our guest this week travelled a meandering route through his career. While studying meteorology and public health in university, Eric Crittenden (CIO of Standpoint Asset Management) stumbled into an economics class and fell in love with complex dynamic systems. He then joined a family office that was uniquely focused on levering into technology companies in the run up to the Dotcom Crash, a debacle that strengthened his views on the importance of diversification and risk management. We discussed:
- From a purely cartesian market view, to recognizing the crucial role played by psychology and behavior
- Early appreciation for the “elevator down, escalator up” type of risk
- How to give investors both what they want and need
- His whitepapers, especially “Does Trend Following Work on Stocks?”
- Why it’s harder to raise capital for diversified strategies, but also harder to get fired
- Liquidity weighting versus risk weighting
- Why collecting a risk premium means you are on the “wrong side” of skew
- Disaggregating term structure from price appreciation in returns - why carry pays
Our conversation also covered the benefits of signal generation that combines different phenomena, why in theory, investors want diversification and risk management (but not so much in practice), and much more. A widely entertaining episode, with no words minced and even a moment of collective catharsis.
This is “ReSolve’s Riffs” - live on RUclips 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*.
=============================================================================
For the transcript of this video visit: investresolve.com/podcasts/re...
For our latest research insights and exclusive content visit our website!
Blog Articles: investresolve.com/blog/
Featured Research Papers: investresolve.com/research/
Webinars: investresolve.com/media-cente...|0
Podcasts: investresolve.com/podcasts/
=============================================================================
*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.

[@AmitGupta-lx4gu]

This is probably the best ReSolve Riff I've seen.

[@montrader1]

Great discussion everyone!