At The Money: Diversifying with Managed Futures ETFs

The podcast explores diversification strategies beyond the traditional 60/40 model, especially given the increasing correlation between stocks and bonds. Andrew Beer, a hedge fund veteran and founder of Dynamic Beta Investments (DBI), discusses hedge fund replication strategies through low-cost, liquid vehicles like ETFs. He critiques the liquid alternative products industry, noting that many supposed diversifiers have high correlations to equities and deliver low returns. Beer advocates for managed futures as a durable strategy with no correlation to stocks and bonds, particularly effective in difficult market environments. He also touches on replicating the broad hedge-fund industry by identifying and synthesizing their significant themes and trades, rather than specific stock positions.