Excess Returns is an investing podcast hosted by Jack Forehand and Justin Carbonneau, partners at Validea Capital Management. Justin and Jack discuss a wide ran...
Inside the Mysterious World of Pod Shops: The Elite $300 Billion Hedge Fund Strategy | Bob Elliott
In this episode of Excess Returns, hosts Justin and Matt sit down with Bob Elliott, founder of Unlimited Funds, to explore the fascinating world of multi-strategy hedge funds, also known as "pod shops." Bob breaks down how these complex investment vehicles work, discussing their unique structure where multiple portfolio managers operate independently while sharing infrastructure and risk management resources.
The conversation covers crucial topics including:
How pod shops attract and compensate top trading talent
The economics and fee structures of modern hedge funds
Risk management challenges when running multiple strategies
The evolution from traditional hedge funds to pod shop models
The impact of growing assets under management on performance
The emergence of ETFs as alternatives to hedge fund strategies
Drawing from his extensive experience in the hedge fund industry, Bob provides unique insights into why pod shops have captured headlines despite representing only a fraction of the overall hedge fund industry. He also discusses his current work at Unlimited Funds, where he's working to make hedge fund strategies more accessible through ETF structures.
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57:37
Dispelling Big Investing Myths | Dan Rasmussen
In this episode of Excess Returns, Jack Forehand and Justin Carbonneau sit down with Dan Rasmussen from Verdad Advisers to discuss his firm's top research pieces from the past year.
They explore several fascinating market insights, including:
Why high bond yields don't necessarily translate to high returns
The dramatic outperformance of U.S. markets post-financial crisis and the potential opportunity in cheaper international stocks
How private equity return dispersion may be more about portfolio construction than manager skill
The promising changes happening in Japanese corporate governance
Britain's market valuation in the wake of Brexit
Dan also announces his upcoming book "The Humble Investor" which challenges common assumptions about predictability in markets. Throughout the conversation, he offers thought-provoking perspectives on market efficiency, the limitations of forecasting, and why humility is crucial for investment success.
Whether you're an institutional investor or individual market participant, this discussion provides valuable insights into contrarian investment opportunities and challenges prevailing market narratives with data-driven analysis.
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55:17
Why Most Investors Won't Buy the Best Diversifier | Andrew Beer on Managed Futures
In this episode of Excess Returns, hosts Justin and Jack sit down with Andrew Beer of Dynamic Beta Investments to explore the fascinating world of managed futures and alternative investment strategies. Andrew, who manages over a billion dollars in assets, shares valuable insights on why managed futures remain underutilized despite their proven benefits for portfolio diversification.
The conversation dives deep into several key topics:
How to effectively communicate complex investment strategies to clients
Why the narrative around managed futures is just as important as their performance
The challenges of getting investors to adopt alternative strategies despite their clear statistical benefits
How Dynamic Beta replicates hedge fund strategies in a cost-effective ETF wrapper
The importance of simplicity in investment strategies and why complexity isn't always better
Andrew also discusses the evolution of the ETF landscape, the role of artificial intelligence in investment management, and why maintaining a steady, unchanging strategy has been crucial to his firm's success. Whether you're an investment professional or individual investor, this discussion offers valuable perspectives on portfolio diversification and the future of alternative investments.
SEE LATEST EPISODES
https://excessreturnspod.com
FIND OUT MORE ABOUT VALIDEA
https://www.validea.com
FIND OUT MORE ABOUT VALIDEA CAPITAL
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FOLLOW JACK
Twitter: https://twitter.com/practicalquant
LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094
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LinkedIn: https://www.linkedin.com/in/jcarbonneau
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1:07:01
What the Rise of Passive Investing Means for Your Portfolio | Special Guest: Dave Nadig
In this episode, Jack Forehand and Matt Zeigler dive deep into one of the most debated topics in modern finance with special guest Dave Nadig. This episode explores how passive investing has transformed markets, featuring insights from leading experts including Mike Green, Aswath Damodaran, Rick Ferri, Rob Arnott, and Cliff Asness.
Key discussions:
Why active investing's poor performance led to passive's rise
How index fund flows might affect market dynamics
The difference between stocks in and out of major indices
Whether passive investing could potentially destabilize markets
What this means for individual investors
Whether you're a market professional or retail investor, this conversation offers crucial insights into how passive investing is reshaping financial markets and what it means for your portfolio.
Featured Guests' Clips:
Aswath Damodaran on active management's track record
Mike Green on passive investing mechanics
Rick Ferri with the counterargument
Rob Arnott on index inclusion effects
Cem Karsan on why active may rise again
Cliff Asness offering a balanced perspective
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1:04:07
The Most Misunderstood Bull Market Ever | Jim Paulsen
In this episode of Excess Returns, we sit down with veteran investment strategist Jim Paulsen to discuss the current market landscape and economic outlook. Paulsen, author of Paulson Perspectives on Substack, shares unique insights on why traditional recession indicators have failed, how Main Street sentiment impacts markets, and why he remains optimistic despite widespread pessimism.
Key topics include:
Why the Fed's recent approach differs from historical patterns
The changing nature of market valuations
The impact of technology on profit productivity
Why consumer confidence remains surprisingly low
The future of long-term bond yields
Drawing from over 40 years of market experience, Paulsen offers a data-driven yet practical perspective on where markets may be heading and why many conventional indicators may need updating for today's economy.
SEE LATEST EPISODES
https://excessreturnspod.com
FIND OUT MORE ABOUT VALIDEA
https://www.validea.com
FIND OUT MORE ABOUT VALIDEA CAPITAL
https://www.valideacapital.com
FOLLOW JACK
Twitter: https://twitter.com/practicalquant
LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094
FOLLOW JUSTIN
Twitter: https://twitter.com/jjcarbonneau
LinkedIn: https://www.linkedin.com/in/jcarbonneau
Excess Returns is an investing podcast hosted by Jack Forehand and Justin Carbonneau, partners at Validea Capital Management. Justin and Jack discuss a wide range of investing topics, including factor investing, value investing, momentum investing and behavioral finance, and talk to interesting guests with the goal of helping those who watch and listen become better long term investors.
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