OI23: Why Capital Efficiency Is the Next Edge in Investing ft. Charlie McGarraugh

Systematic trading strategies require a shift from pure trend-following toward multidimensional risk premia to navigate modern market volatility. As the global financial landscape moves away from the volatility suppression characteristic of the quantitative easing era, adaptive investment approaches become essential. Capital efficiency and dynamic reactivity to new information represent the primary drivers of long-term success, rather than simple return prediction. By leveraging futures markets for their unique capital efficiency and implementing sophisticated sizing models, investors can better manage the trade-offs between drawdown tolerance and compounded returns. Charlie McGarraugh, CIO of Altus Partners, highlights the necessity of balancing these factors, noting that the ability to stomach drawdowns significantly impacts long-term growth. Furthermore, the transition toward active, transparent ETF structures allows for the delivery of these complex trading strategies to a broader range of investors, effectively unbundling and rebundling institutional-grade investment intellectual property.