Show Us Your Portfolio: Adam Butler | Using Risk Parity to Achieve Balance and Diversification

In this episode we speak with ReSolve Asset Management CIO Adam Butler about how he manages his personal portfolio. We discuss how Adam builds a portfolio of uncorrelated return streams to optimize both return and risk. We also cover how to view historical data, how investors focus on tracking error changes portfolio theory, leverage, leaving money to children and a lot more.
00:00 - Intro
05:25 - Adam's goals with his personal portfolio
08:13 - How Adam views retirement
10:47 - The 60-40 portfolio and tracking errror
16:37 - Why investors focus on tracking error turns modern portfolio theory on its head
21:54 - The benefits of managed futures
23:52 - How Adam views historical data and backtesting
33:07 - Adam's core investment strategy
40:24 - The benefits of investing in your own strategies
44:17 - Adam's views on leverage
50:46 - Adam's views on venture capital and private equity
52:26 - Adam's views on cryptocurrencies
56:02 - The investment potential of AI
01:00:41 - Adam's views on leaving money to his kids
01:05:28 - Adam's biggest investing mistake
01:09:11 - Adams most important non-monetary investment
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[@George-jm4rn]

Wonderful interview. Mr. Butler is smart, thoughtful, stimulating, and, it appears, a very nice guy.

[@ExcessReturns]

You are 100% correct on all fronts. Thank you for watching!

[@ankmaury]

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[@HepCatJack]

I'm not sure that I agree that supply side won't produce enough for the demand. Some office REITS owners may have it in their own interest to convert some of the older office buildings into condos in order to reduce the overall inventory of offices and putting their empty office properties to work as rental properties or selling them as new condos. This would mean shifting inventory to where the supply is. Some are considering converting offices into a hotel that is run by Airbnb.

[@irhumbled]

I’ve heard there’s substantial challenges in rezoning and rehabbing them to residential units. Can’t say I heard why tho

[@whatgej]

Adam is the GOAT when it comes to diversification and portfolio construction. I'd be interested in his political views on how to align incentives of policymakers with success of the country which is a preeminent problem.

[@ardaklnc8322]

please add Turkish language option to the translation