The Concept of Return Stacking with Corey Hoffstein

Masters in Business

Bloomberg

Business, Investing

4.4 • 2.2K Ratings

🗓️ 21 November 2024

⏱️ 106 minutes

🔗️ Recording | iTunes | RSS

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Summary

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Barry Ritholtz speaks with Corey Hoffstein, CEO and CIO of Newfound Research. Corey pioneered the concept of 'return stacking' and is one of the masterminds behind the Return Stacked ETF Suite, which manages roughly $750 million across five ETFs. Corey's work has been published in the Journal of Indexing and the Journal of Alternative Investments. He is also the host of the popular podcast on quantitative investing "Flirting with Models." On this episode, Barry and Corey discuss the creation of Newfound Research, what it takes to launch an ETF, and how return stacking actually works.

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Transcript

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0:00.0	While the business world is readjusting to AI, there's another technology just around the corner that's going to be equally as transformative.
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0:47.2	Bloomberg Audio Studios. Podcasts, Radio News.
0:59.6	This is Masters in Business with Barry Rittoltz on Bloomberg Radio.
1:04.4	This week on the podcast, another extra special guest.
1:14.5	Corey Hofstein is one of these really fascinating quants who has just a really interesting background. Not only did he stand up a research shop from a dorm room in college and started selling model portfolios to fund managers,
1:24.6	but eventually created a suite of first mutual funds and then ETFs, really
1:31.1	pioneering the concept of return stacking. People have described that in the past as portable
1:38.0	alpha. He does some really, really interesting research and gets deep into the weeds on things like
1:45.7	market structure, liquidity cascades, what really drives returns, how much should you be
1:51.2	focused on alpha versus beta? But most fascinating of all, he is one of those rare quans who has
2:00.4	the ability to take complex, sophisticated,
2:05.6	quantitative topics and make them very understandable for the average investor.
2:11.6	If you're at all interested in concepts of things like portable alpha, return stacking, or just want to know
2:20.7	how a quant looks at the world of investing and tries to decide where there are opportunities.
2:28.8	I found this conversation to be fascinating, and I think you will also.
	...

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