We’re back with Episode 5 of the Prometheus Podcast! This recording is one of many podcasts to come, which will cover far-ranging topics in macro, markets, and investing. As always, our objective is to bring you thoughtful and actionable insights, and our conversations will always aim to be so.
Today, we have another exceptional guest for you- Bob Elliott. Bob is Co-Founder and CEO of Unlimited- a company that uses machine learning to replicate hedge fund strategies in a low-cost ETF format. Before starting Unlimited, Bob spent over a decade at Bridgewater Associates, one of the largest and most successful macro hedge funds, and was integral to building their systematic process. Bob brings a rich mixture of economic analysis, portfolio construction, and systematic thinking to this episode, which is not to be missed! Aahan & Bob cover almost every aspect of macro in their discussion and provide a rigorous framework for thinking about the current environment. If Alpha was ever available on a podcast, it’s this one!
Find the show notes below:
(00:00 - 14:30) Macro Mechanics: A Transactions Based Approach To The Economy, The Long Term Drivers, Debt Levels & Impact
(14:30 - 31:30) Inflation: Secular Drivers, Offsetting Dynamics That Caused Low Inflation, Inflation Inflection, The Nominal Economy, The Classic Inflation Cycle
(31:30 - 48:00) Assets & Portfolio Structuring: Avoiding The Recency Bias in 60/40 Portfolios, Constructing Balanced Portfolios, Alternative Premia, Alpha Decay, Alpha Generation
(48:00 - 53:00) Current Environment: Where We Are, Asset Prices Need To Decline To Tame Inflation, Stocks Rich Verus Bonds, Will The Fed Go Further Than Expected, Bonds & Stocks.
(53:00 -1:16:00 ) Alpha Positions: Shorting Stocks, Relative Value Between Stocks & Bonds, Bond Drivers, Breakevens, Commodities, Alpha Portfolio Pairing
Make sure to check out Bob & Unlimited on their website; they have a very exciting product: Unlimited Funds. For more “high-frequency insights,” follow both @prometheusmacro & @BobEUnlimited on Twitter.
If you enjoyed this episode, make sure to let us know in the comments below. Finally, if you haven’t already, don’t forget to subscribe!