Today’s guest is Bob Elliott, CEO & CIO of Unlimited Funds, which using machine learning to create products that replicate the index returns of alternative investments. Previously, Bob was the Head of Ray Dalio’s Research Team and served on the Investment Committee at Bridgewater Associates. Given the volatile macro environment today, we figured there’s no one better to have on to share his view than Bob.
In today’s episode, we touch on rates, the inflationary cycle, the strong US dollar, and how all of these shape his view of the markets and economy as we head into 2023. Then we discuss what strategies are worth looking for alpha in a world where beta is almost free, how he thinks about managers’ performance coming from luck vs. skill, and the benefit of low cost, systematic strategies.
As we wind down, we touch on Bob’s entrance into the ETF space with a great ticker, HFND.
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For detailed show notes, click here
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Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here.
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
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Bob Elliott, Unlimited Funds – A Macro Masterclass | #458

Ready to grow your wealth through smarter investing decisions? With The Meb Faber Show, bestselling author, entrepreneur, and investment fund manager, Meb Faber, brings you insights on today’s markets and the art of investing.

Featuring some of the top investment professionals in the world as his guests, Meb will help you interpret global equity, bond, and commodity markets just like the pros. Whether it’s smart beta, trend following, value investing, or any other timely market topic, each week you’ll hear real market wisdom from the smartest minds in investing today. Better investing starts here.

For more information on Meb, please visit MebFaber.com. For more on Cambria Investment Management, visit CambriaInvestments.com.

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Management & Marketing

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Management

Today’s guests are Eric Crittenden, CIO of Standpoint Asset Management, and Jason Buck, CIO of Mutiny Funds.
In today’s episode, we talk about the sentiment around trend-following today. We discuss optimal diversifiers for trend-following, how the Herschel Walker trade relates to portfolio construction, and if investors are as diversified as they think they are.


(1:01) - Welcome back to our guests, Eric and Jason; Episode #389: Eric Crittenden; Episode #440: Jason Buck


(2:02) - Investor interest in trend following

(6:00) - Herschel Walker Syndrome


(15:55) - Building a portfolio away from the traditional 60/40

(18:08) - Rob Lintner Revisited


(29:02) - Interest overseas 

(41:30) - Paul Mulvaney’s back-to-back 40% months

(51:19) - Show recommendations

(56:22) - What Jason & Eric are hearing from investors today

(1:03:22) - Love for ETFs

(1:10:12) - Pairing trend following with factor investing

Learn more about Eric and Jason: Standpoint; Mutiny Fund



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For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
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Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only). 
Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
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Eric Crittenden & Jason Buck Explain Why Best Investors Follow the Trends | #533

Today’s guest is Hendrik Bessembinder, a professor at Arizona State University.
In today’s episode, Meb and Hank discuss Hank's research on long-term stock returns and wealth generation. They explore the concept of power laws in the stock market, where a small percentage of stocks generate significant returns, while the majority underperform. They also discuss the implications of Hank's findings for investors, including the importance of diversification and the challenges of holding onto big winners.

(1:06) - Welcome to our guest, Hendrik Bessembinder

(1:27) - Do Stocks Outperform Treasury Bills?


(6:16) - Power laws drive stock market returns

(13:52) - The importance of holding on to winners in your portfolio

(15:22) - Shared traits among the best stocks

(23:10) - Takeaways from his global studies

(28:21) - Mutual Fund Performance and Long Horizons


(31:34) - Other topics Hank is interested in researching

(37:52) - Hendrik’s most memorable investment

Learn more about Hendrik: SSRN; Lessons from Bessembinder


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Sponsor: 10 East is a membership-based investment firm founded by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner, focused on providing targeted exposure to private markets. Members invest at their discretion in single-investment and niche fund vehicles across private credit, real estate, private equity, and venture capital.
Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
-----
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Hendrik Bessembinder - Do Stocks Outperform T-Bills? | #532

Today’s guest is Catherine LeGraw, a member of GMO’s Asset Allocation Team.
In today’s episode, Catherine explains why this is “the best relative asset allocation opportunity we’ve seen in 35 years," and “we are building portfolios with some of the highest forecasted relative and absolute returns we’ve ever seen." She explains where she sees opportunity around the world today, why she’s excited about deep value and quality, and how she’s thinking about the Magnificent 7.

(1:34) - Welcome to our guest, Catherine LeGraw

(1:45) - Why Catherine is so excited about the opportunity set today (Record Highs…But We’re Still Excited)


(8:04) - The Magnificent 7 (Magnificently Concentrated)


(14:39) - The opportunity in deep value

(17:10) - Opportunities in foreign stocks

(20:38) - GMO 7-Year Asset Class Forecast (Feb. 29, 2024)


(23:46) - Currency implications

(24:56) - The current state of bonds

(30:46) - Other interesting assets

(34:35) - Jump in the Deep End / GMO


(34:59) - Catherine’s most controversial opinion

(37:04) - Catherine’s most memorable investment

(38:41) - What in Tarnation



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Follow Meb on Twitter, LinkedIn and YouTube
For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
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Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only). View their Economic Update Visual Deck. 
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Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok
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Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
-----
Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
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Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

GMO's Catherine LeGraw - Capitalizing on Global Asset Allocation in 2024 | #531

Today’s guest is Professor Ken French, the Roth Family Distinguished Professor of Finance at the Tuck School of Business at Dartmouth College. He’s written some of the most influential papers in finance alongside former podcast guest, Professor Eugene Fama. 
In today’s episode, Ken shares what topic he and Professor Fama disagree on. Then we get into a number of topics: what it means to truly be a long-term investor, the global market portfolio, misconceptions around stock buybacks, and much more.
(01:17) - Welcome to our guest, Kenneth French
(03:35) - Investing in FAANG Stocks: Should You Expect Unexpected Returns?
(07:10) - Deciphering an investors skill vs. luck
(15:12) - Having an investment plan
(20:24) - The global market portfolio
(25:02) - Thoughts on gold and other commodities
(26:26) - Incorporating human capital
(32:12) - Ken’s thoughts on stock buybacks
(35:36) - Improving financial education
(40:10) - Disagreement, Taste, and Asset Prices
(44:05) - Ken’s most controversial opinion
(46:37) - Ken’s most memorable investment

Resources
Ken’s website
The Best Way To Add Yield To Your Portfolio by Meb Faber
The Arithmetic of Active Management by Bill Sharpe
Things I’ve Learned from Gene by Kenneth French

-----
Follow Meb on Twitter, LinkedIn and YouTube
For detailed show notes, click here
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
-----
Sponsor: 10 East is a membership-based investment firm founded by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner, focused on providing targeted exposure to private markets. Members invest at their discretion in single-investment and niche fund vehicles across private credit, real estate, private equity, and venture capital.
Follow The Idea Farm: Twitter | LinkedIn | Instagram | TikTok
-----
Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
-----
Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
-----
Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

Professor Kenneth French on Risk, Return, and Rationality | #530

In today’s episode, Meb reads a white paper, “T-Bills and Chill…Most of the Time.”
-----
Follow Meb on Twitter, LinkedIn and YouTube
To learn more about our funds and follow us, subscribe to our mailing list. 
-----
Follow Meb on Twitter, LinkedIn and YouTube
To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com
-----
Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only).
Sponsor: Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here.
Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok
-----
Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com
-----
Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. 
-----
Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! 
Learn more about your ad choices. Visit megaphone.fm/adchoices

Bob Elliott, Unlimited Funds – A Macro Masterclass | #458

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