Allocators Want What They Want | Andrew Beer on Pod Shops, “Volatility Laundering,” and Building Liquid Alts That Don’t Suck

In this episode of Monetary Matters, Jack Farley interviews Andrew Beer, founder and managing member of DBI, about hedge funds, alternative investments, and strategies for wealth management. They discuss the focus on drawdown and volatility minimization in the institutional investment space, questioning whether allocators prioritize career considerations over optimal returns. Beer shares insights on multi-strategy firms, the challenges of active versus passive investing, and the complexities of replicating hedge fund performance through ETFs like QALT. The conversation explores the importance of simple, efficient investment strategies, the role of fees, and the need for advisors to effectively communicate complex financial concepts to clients, emphasizing a balanced approach to portfolio construction that considers both statistical benefits and investor comfort.