In today’s episode, Antti Ilmanen, author and Global co-head of the Portfolio Solutions Group at AQR Capital Management, joins us to discuss key learnings from his new book, “Investing Amid Low Expected Returns”. We break down why commodities are crucial for generating returns in periods of high inflation and how to manage risk through diversification. We also discuss portfolio construction and whether bonds are still valuable in a diversified portfolio, market timing and how to balance emerging markets and developed markets in your investment strategy, why a diversified blend of risk premia is advantageous and finish off highlighting potential pitfalls of using long-term data and much more.
Follow Kevin on Twitter.
Follow Antti on LinkedIn.
IT's TRUE 👀 - most CIO's read 50+ books each year - get your copy of the Ultimate Guide to the Best Investment Books ever written here.
And you can get a free copy of my latest book "The Many Flavors of Trend Following" here.
Learn more about the Trend Barometer here.
00:00 - Intro
03:36 - About Antti’s book, “Investing Amid Low Expected Returns”
15:22 - The importance of commodities, especially during inflationary times
21:36 - What’s up with bonds?
30:06 - Emerging markets vs. high beta
38:40 - Alternative risk premia...both Alpha & Beta like
47:00 - The idea of valuation spreads and crowding concerns
52:04 - The defensive bucket...getting rid of the junk
01:02:16 - Summary by Kevin and Niels