In episode 113, Alex Proimos speaks with Jon Lukomnik, author of Moving Beyond Modern Portfolio Theory: Investing That Matters. This episode discusses the background to Jon's new book, the problems of modern portfolio theory and it can be described as Maslow's hammer. We delve into the impact on capital markets caused by institutional investors moving away from the Warren Buffet and Graham and Dodd approach to security analysis to a highly quantitative approach in terms of portfolio...

In episode 112, Alex Proimos speaks with Corey Hoffstein, co-founder and chief investment officer at Newfound Research. This episode goes into Corey's background and the framework supporting the liquidity cascade thesis. We discuss the tightening of the financial and real economy through the “wealth effect” as investors are forced to use markets as savings vehicles. We explore the evidence of market reflexivity due to the financialisation of the markets, the meme stock mania, and the greater...

In episode 111, Alex Proimos speaks with Viktor Shvets, author of The Great Rupture: Three Empires, Four Turning Points, and the Future of Humanity and managing director, head of the Asia-Pacific and global strategy at Macquarie Group. This episode discusses the background and thesis of Viktor's book, The Great Rupture. We cover the impact of generational change and the information age, the need for freedom, and the impact of the millennials in politics and their expectations of the state....

In episode 110, Alex Proimos speaks with Jeff Hooke, a senior finance lecturer at Johns Hopkins Carey Business School.  This episode delves into Jeff's background and motivation to writing The Myth of Private Equity: An Inside Look at Wall Street’s Transformative Investments. The conversation covers why the performance of private equity struggles to beat a 60-40 public market portfolio, the illusion of stability, and whether the asset class truly offers diversification. We also cover the...

In episode 108, Alex Proimos speaks with Noel Smith, chief investment officer at Convex Asset Management.  This episode discusses Noel's transition from neuroscience to finance and working in the trading pits of the Chicago Mercantile Exchange. We discuss prop trading and managing risk and how it differs from high-frequency trading. We also talk through the traits that make up a good trader, intuition and how genetic ability plays a role. Finally, we explore the notion that the stock market...

In episode 108, Alex Proimos speaks with Mike Green, chief strategist and portfolio manager at Simplify Asset Management. This episode discusses how to utilise the data for passive market flows to benefit your portfolio. We explore the active versus passive debate from a new angle, particularly at a time of declining alpha in listed markets due to unprecedented liquidity from central banks. We then cover how markets no longer behave linearly, and this requires derivative strategies and...

In episode 107, Alex Proimos speaks with Thad McCrindle, chief investment officer at Sandhurst Trustees. This episode delves into Thad's views on investment strategy and decision-making. The conversation covers how to develop your art as an investor through various cycles and experiences, the need for consistent processes, and a continual willingness to test the status quo and ultimately be adaptable as an investor.

In episode 106, Alex Proimos speaks with Andrew Lill, chief investment officer at Rest Super. This episode delves into the transformation that REST Super had undertaken since Andrew's appointment 9 months ago. We discuss the evolution of the internal teams, the competitive landscape, regulatory reforms, and his thoughts around private markets, illiquidity, absolute return strategies, including tail hedging. The conversation also covers the importance of operational infrastructure, taking a...

In episode 105, Alex Proimos speaks with Andrew Parry, head of sustainable investment at Newton Investment Management. This episode begins by delving into the role and impact of activism versus the power of market forces of capitalism. We discuss how incentives and disincentives can be used to change corporate behaviour. We also challenge that narrative that being ESG friendly is sufficient for outperformance and whether a passive allocation is an abdication of fiduciary duty. Finally, we...

In episode 104, Alex Proimos speaks with Del Hart, head of external investments and partnerships at NZ Super Fund. In this episode, we discuss Del's background and current role at NZ Super. We delve into the strategy for the manager stable, including the number of relationships and mandates. We explore NZ Super's drive for fewer and deeper manager relations and how this is being challenged by introducing new mandates in real estate and infrastructure. Finally, we cover how they plan to...

In episode 103, Alex Proimos speaks with John Cochrane, Rose-Marie and Jack Anderson, a senior fellow at the Hoover Institution, Stanford University and author of the Grumpy Economist blog. This episode discusses the bureaucratic overreach of the Federal Reserve and its lack of mandate to pursue economic equality and social justice. We discuss the concerns around global debt, MMT, inflation and the role of narrative management in economic and financial markets. The conversation also takes a...

In episode 102, Alex Proimos speaks with Mark Beardow, co-chief investment officer, and Andrew Baume, adviser, at Darling Macro. This episode delves into a unique approach to wealth generation, asset sleeves and thinking about your personal balance sheet. We discuss asset allocation guided by outcomes and not benchmarks and the impact of dynamic covariance and correlation on the more static strategic asset allocation review process. We cover the strategic choices in which defensive...

In episode 101, Alex Proimos speaks with Delilah Rothenberg, co-founder and executive director of the Predistribution Initiative and Taylor Sekhon, director at Social Capital Partners. The podcast is episode three in a special three-part series in association with the Predistribution Initiative as we explore the layers of Influence in the capital markets value chain, incentives, portfolio construction, and financial analysis practices at the asset owner and allocator level that cascade down...

In episode 100, Alex Proimos speaks with Sean Henaghan, chief investment officer at Aurora Capital. This episode is a celebratory one as Market Narratives ticks over one hundred episodes since we started only one year ago. Sean was the inaugural guest on the series. At that time, he was in lockdown in Whistler, Canada and contemplating his next step while being on sabbatical from AMP Capital. This episode discusses his new role running KiwiSaver, which is a voluntary work-based savings...

In episode 99, Alex Proimos speaks with Alfonso Peccatiello, portfolio manager and author of the Macro Compass. This episode delves into the economic and political challenges in Europe, and in particular Italy. We explore how a fragmented European continent can navigate fiscal policy across countries with a singular monetary union. The conversation then moves to the real threats of deflation in a world of too much debt, poor demographics and technological innovation. Finally, we cover the...

In episode 98, Alex Proimos speaks with Scott Pappas, principal consultant and head of alternatives and derivative solutions, at Frontier. This episode covers Scott's background as an engineer and trader and later pursuit of a PhD. We discuss the evolution of risk management and downside protection and the evolving challenges faced by asset allocators as they determine the role of alternatives in their portfolio. We touch on Scott's move from a super fund to consulting and education to...

In episode 97, Alex Proimos speaks with Nick Kelly, head of manager research, at Willis Towers Watson. This episode covers the evolution of manager research of the past 20 years. We discuss whether there is a competitive advantage in single or multi-asset class managers, the role of culture and incentives in driving both innovation and long term performance. Then we touch on the potential for red flags when monitoring post-investment and both qualitative and quantitative methods that help...

In episode 96, Alex Proimos speaks with Nancy Davis, managing partner and chief investment officer at Quadratic Capital Management. This episode discusses the macroeconomic environment and the potential of inflation, stagflation and deflation. We explore the increasing fixed income volatility despite the continual central bank intervention and low equity volatility. We then delve into the motivation in creating a fixed income ETF using TIPS and OTC derivatives to hedge the relative interest...

In episode 95, Alex Proimos speaks with Delilah Rothenberg, co-founder and executive director of the Predistribution Initiative and Raphaële Chappe, economic advisor for The Predistribution Initiative and assistant professor of economics at Drew University. The podcast is episode two in a special three-part series in association with the Predistribution Initiative as we explore the layers of Influence in the capital markets value chain, incentives, portfolio construction, and financial...

In episode 94, Alex Proimos speaks with Chris Schelling, director of alternative investments, at Venturi Private Wealth. In this episode, we cover the eventual decline of everything previously called alpha. We discuss how the chasing of alpha is largely a fool's errands given the significant liquidity in the system, the democratisation of the financial markets, and institutional allocators' expectations. Then we debate the realistic expectations for alternatives and how investor focus...

In episode 93, Alex Proimos speaks with James Kosmatos, an independent investment analyst working full time within the cryptocurrency industry. This podcast covers James' decision to research crypto and DeFi full time. We discuss how the sensationalised, media-grabbing headlines around the prices of Bitcoin, Ethereum, and Dogecoin are shadowing the innovative technology that is being developed in the cryptocurrency space. The conversation delves into the background of DeFi and the various...

In episode 92, Alex Proimos speaks with Delilah Rothenberg, co-founder and executive director of the Predistribution Initiative and Denise Hearn, co-author of The Myth of Capitalism: Monopolies and the Death of Competition and board chair of the Predistribution Initiative. The podcast is episode one in a special three-part series in association with the Predistribution Initiative as we explore the layers of Influence in the capital markets value chain, incentives, portfolio construction, and...

In episode 91, Alex Proimos speaks with Lorne Johnson, managing director and director of institutional solutions at QMA (a PGIM company). This episode covers the market regimes and policy uncertainty and how to allocate based on assumptions of growth, inflation, and interest rates. We discuss how to manage a portfolio during a period of high convexity in interest rates, the suppression of volatility by central banks and asset correlations higher than in history. Finally, we talk about the...

In episode 90, Alex Proimos speaks with Désirée Lucchese, ethics and impact manager at U Ethical. This episode looks at the sustainability philosophy and praxis. The conversation delves into many questions. How can we create investment frameworks that address inter-generational equity and industrial ecology? Stakeholder capitalism and risk materiality. What risks matter, and in what time frame? Geopolitics, systemic risks and portfolio construction. How much does idiosyncratic risk matter?...

In episode 89, Alex Proimos speaks with Graeme Bibby, the former chief investment officer of multi-family office Mutual Trust. This episode explores portfolio modelling and assumptions to be more adaptive to convergent and divergent trends. We explore how megatrends are reinforcing each other to accelerate the pace of change and disruption of market structure, and also how market narratives influence markets. We discuss how to rethink the mean-variance modelling assumptions and how long...