Cliff gave his thoughts on the choice between leverage risk and concentration risk in a recent interview with Ted Seides on the Capital Allocators podcast – listen to the clip below. Cliff covers regime changes in factors, machine learning, pod shops, private equity, serving on investment committees and more in the full episode linked below: - Apple: https://lnkd.in/eMteiaAp - Spotify: https://lnkd.in/eK5WJMtp
Great insights, Cliff! Leveraging machine learning to navigate regime changes in factors is crucial in today's investment landscape.
Great point. This is both very simple and very counterintuitive. Maybe that is why it is often overlooked.
Excellent point. Easier to see leverage risk than concentration risk.
Fascinating insights, Cliff! Your perspective on balancing leverage and concentration risks is truly enlightening.
Congrats for the decision.
Do not fear leverage risk.
Passionate about process improvement and employee development that puts people first. Believer in continuous-improvement through rejection of inertia and thoughtful evaluation of latent biases.
3wI think many investors, including some incredibly bright people, perceive a linear relationship between risk and reward. When diversification is done properly (and with some leverage) though, I really think you can have your Sharpe and eat it too.