In this episode, we discuss:
- Better education around capital allocation
- Allocating capital throughout various market cycles
- How to define an ‘alternative investment’
- How actively we should manage a portfolio
- Traditional versus alternative investments
- The difficulties in the manager selection process
- Being a great behavioural investor as an allocator
- Difficult conversations with clients
- Advice for aspiring capital allocators
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00:00 - Intro
02:44 - How 2022 has been for allocators so far
03:13 - Phil Huber’s journey into investing
05:46 - Why Phil wrote a book on capital allocation
09:00 - The typical clients, and types of portfolios that Phil deals with
12:07 - The 60 / 40 portfolio and how it became so popular
18:49 - Adjusting portfolios to accommodate for changing market cycles
22:37 - Defining ‘alternative investments’
30:27 - Choosing which strategies to invest in, and when to choose these strategies
37:45 - The extent to which a portfolio should be actively managed
39:36 - Traditional versus alternative investments
40:04 - The challenges of manager selection
49:51 - Cultivating a behavioural edge as an allocator
53:09 - The importance of courage
54:55 - Managing difficult conversations with clients
01:01:68 - Advice for aspiring asset allocators