Jon Robinson and Joe Crawford

Recent Posts

An Alternative to Liquid Alternatives - Updated

Posted by Jon Robinson and Joe Crawford on 4/11/19 10:25 AM

Nearly a year and a half ago, we published an original piece entitled “An Alternative to Liquid Alternatives.” At the time, we wrote: “many of the currently investible vehicles have not been truly tested in a dramatic drawdown environment like 2008.” Since publication, the investing landscape has changed substantially; interest rates are rising, the S&P 500 has endured a 20% drawdown, and the yield curve has inverted, to name just a few of the many notable developments.

Given the path of global markets since Oct 2017, there has been ample opportunity for liquid alts to prove their mettle, so we thought it was time to update the data for one of our most popular blogs. Let’s look at the revised story…

Read More

Topics: Behavioral Finance, Systematic Investing

An Alternative to Liquid Alternatives

Posted by Jon Robinson and Joe Crawford on 10/2/17 8:55 PM

 

For the updated version of this blog, click here.

In the aftermath of the Great Recession investors have sought greater diversification for their portfolios. One set of instruments that investors have used to achieve this goal is liquid alternatives (aka ‘liquid alts’). Investors are seeking out these strategies in an effort to reap the potential portfolio benefits of:

Read More

Topics: Behavioral Finance, Systematic Investing

60/40, Landlines, and 8-tracks

Posted by Jon Robinson and Joe Crawford on 4/27/17 11:33 AM

 

The investment industry is facing a “60/40 problem”. Over the past several decades, advisors have leaned on the 60/40 portfolio to deliver a less-volatile, but still relatively reliable return for balanced investors due to their lack of tolerance for the volatility and drawdowns of a pure equity allocation. While the addition of bonds to an otherwise non-diversified portfolio of equities does indeed reduce the beta of the overall portfolio, the correlation to equities remains high given that “the 60” has been 3 times as volatile as “the 40.”  In our view, the 60/40 problem boils down to an underestimation of future risks for both bonds and stocks. Rather than solving a new problem with an old solution, Blueprint has considerable evidence of a better way.

Read More

Topics: Behavioral Finance, Systematic Investing

Forbes interview with Blueprint
60/40 problem CTA block

Popular Posts