Talking Asset Allocation, AI, and the Alpha Process with ReSolve Asset Management

Is now the time to ditch stocks and buy bonds? Gold? Should you just go to cash? These types of asset allocation decisions are hard enough in the calmest of times – and downright impossible when overwhelmed with fear and panic in times like the past few weeks as stocks have given back a good chunk of their 2019 gains.

If only there were a way to automate those asset allocation decisions, with reams and reams of academic rigor and research behind the algorithmic allocation models. That sure seems like it would be a better way to approach it, and we were lucky to sit down with the smart folks at ReSolve Asset Management, who pretty much do just that, for a great podcast episode.

ReSolve is a systematic asset manager out of Toronto focusing on unique and advanced ways of implementing global asset allocation to generate alpha. In fact, they think of themselves as having a sort of Alpha factory with specific inputs and processes to output the desired product (risk adjusted returns):

 

ReSolve operates managed accounts, private funds, and a mutual fund (RDMIX); using varying automated investment and allocation strategies; including flavors and ensembles of trend following, carry, seasonality, skewness, behavioral arbitrage, and AI/machine learning informed “alpha buckets”.

In this episode, we sit down with Rodrigo Gordillo, Adam Butler, & Mike Philbrick talking about filling in the gaps with mid-frequency trading, learning the ins-and-outs of staying low-carb (while maintaining thick skin), how to build the right team using zebras in a herd of deer, winning the content game, and much more.

For more on ReSolve Asset management, visit their website, check out their Twitter, and take a listen to their very own podcast – Gestault University.

Listen to the episode on the following platforms:

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

logo