The Allocator's Edge Quotes

“What makes today so unique is that we have not previously seen such elevated valuations and such low bond yields simultaneously in our lifetimes.”
― Phil Huber, The Allocator's Edge: A modern guide to alternative investments and the future of diversification

“They then compare the likelihood of at least one strategy being down over various time horizons as well as the likelihood of beating cash over the same time horizons. What they find is that the fox has a slight edge over the hedgehog in beating cash over every time frame, yet is substantially more likely to experience at least one strategy being down.”
― Phil Huber, The Allocator's Edge: A modern guide to alternative investments and the future of diversification

“no one ever got fired for buying IBM,” allocators rarely get fired for recommending a 60/40.”
― Phil Huber, The Allocator's Edge: A modern guide to alternative investments and the future of diversification

“Despite their illiquidity, private markets are not immune to the cyclical forces that drive public market volatility.”
― Phil Huber, The Allocator's Edge: A modern guide to alternative investments and the future of diversification

“Research from AQR compared the returns of the S&P 500 to those of the S&P 500 with a protective put overlay on top from 1996 through 2016. The annualized return of the S&P over that time was 5.1%. While the protective put strategy reduced volatility, it came with the expense of sacrificing nearly all the returns, with an annualized rate of a measly 1.8%. The resulting Sharpe ratio of the protective put strategy was a mere 0.14, much lower than the 0.32 of the S&P 500.”
― Phil Huber, The Allocator's Edge: A modern guide to alternative investments and the future of diversification