Why Beating the Market Isn’t Enough for Investment Managers | Corey Hoffstein
Other People's Money with Max WietheShow Notes
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Corey Hoffstein, CEO and CIO of Newfound Research and co-founder and PM of Return Stacked ETFs, joins OPM to discuss his journey in the investment management business. He argues that beating the market is a commoditized value proposition and that investment managers need to solve other problems for their clients to attract assets. He also discusses his experience licensing research to other asset managers, his belief that distribution is the key question of success in the asset management business, and how quantitative research and other forms of content like podcasts and social media can help build brand awareness.
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Timestamps
00:00 Intro
00:27 Fiscal AI
01:16 The Difference Between Quant and Systematic Investing
03:18 Can Market Bubbles Be Measured?
05:05 Is Market Timing a Good Bet?
09:31 Evolving Risk Premia and Market Inefficiencies
16:41 Fiscal AI
18:20 Beginnings in Investment Management
23:04 Licensing Indexes to Other Managers
27:35 Providing Education Materials
31:26 Moving Into Asset Management
36:47 Evolving into Current Strategies
40:06 Thinking About the Investment Product Wrapper
43:11 Asset Management vs Investment Management
47:27 Solving Behavioral Finance Problems and Market Problems
51:28 Different Ways of Using Leverage
52:41 Knowing Your Client Base Isn’t Institutional
55:45 Content Creation and Brand Building
59:27 Growing an Audience: What Financial Content Goes Viral?
01:04:27 Dealing with Compliance and Education
01:07:22 How To Read and Interpret Quantitative Research as a Normie
01:12:22 How Is AI Being Used by Quants?
01:15:48 Conclusion
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This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
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