Where the Rubber Meets the Road (EP.10)
Summary
In the final episode of Resolve's Masterclass, hosts Adam Butler, Mike Philbrick, and Rodrigo Gordillo synthesize their framework for stewarding quasi-permanent capital. They advocate for a global risk parity core using futures to achieve maximum diversification and cheap leverage, rather than concentrating in equities. The discussion highlights the critical importance of integrating alpha strategies and tail hedges to capture netting benefits and the rebalancing premium. The hosts also outline implementation options for institutions and individuals, ranging from internal management to full…
Topics discussed
Introduction to integration and netting benefits
Series overview and host introductions
Sponsor segment: Horizon Resolve Adaptive ETF
The 'Why': Preparing for multi-decade economic regimes
The 'How': Global risk parity and futures markets
Critique of traditional equity-concentrated portfolios
Building a maximally diverse and resilient portfolio
Leverage efficiency and excess collateral in futures
Adding unique idiosyncratic risks for diversification
Internal integration and trade netting savings
Outsourcing CIO expertise and implementation options
Regulatory constraints and governance challenges
Cash-paid risk parity for high net worth investors
ETF-based risk parity and comfort levels
Cost comparison: Futures leverage vs. broker margin
Accessibility for individuals and total solution funds
The power of top-to-bottom portfolio integration
Rebalancing premium and practical implementation
Call to action and closing remarks
Show notes and resources for listeners
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