Bruno Schwalbach, PhD, CFA

Excited to share that my paper (open access)👉 tinyurl.com/4x8ut64u has been 𝐩𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐭𝐬 𝐉𝐨𝐮𝐫𝐧𝐚𝐥! To introduce an alternative, investors normally need to sell an existing position. This dilemma is particularly relevant today, with global equities near all-time highs. Investors want to continue participating, yet with valuations stretched, also want to diversify against potential drawdowns. Our article shows that you can do both. Using a portable alpha framework, we overlay trend-following and tail-risk hedging strategies on a fully invested global equity portfolio. The results show that these two strategies are complementary and additive: 📈 Enhanced long-term returns 🛡️ Improved downside protection during crises ⚖️ Superior risk-adjusted outcomes over time Would love for you to have a read!

Agreed. Curious on your own framing of how consistent alpha still exists when mkts unpredictable. can’t repeatedly come from guessing macro, I would add can’t come from repeatedly stock picking. repeatable process and edge better: non-correl risk premia, behavioural/structural edges, implementation and risk management.

@bennpeifert @alexxx_wu Benn did you misspell from VIX future in this tweet?

@alexxx_wu dear god in heaven, hallowed be my name, let the S&P fly today with minimal downside volatility

fifty. times. leverage. what a world we live in. god bless the degenerates, may they feel the fire in their ****

@sdav1986 Sigh

@sdav1986 Front VIX fut up nicely on the day!

@ScottPh77711570 @systematicls I relate to this at a very deep level. traumatic at times. Absolutely worth it in the end (survivorship bias) but no question that the path demands blood sooner or later. Gotta love it so much you are willing to bleed for it to come to life.

@systematicls This is so real man. The shit I had to eat to get my business off the ground changed my whole personality

One of the things that annoys me about some new entrepreneurs is that they don’t carry about a passion for the problem they’re trying to solve. It’s almost this disease where they’ll do anything to get funding. Like change their entire product or idea on a whim if that means that’ll get them funded. Obviously then, their goal here is that they want to be a “entrepreneur/founder” more than they want to bring their idea into life. Because if they are willing to abandon their idea at the first point of friction they must not be very passionate about it. Imo, building anything from 0 to 1 is so egregiously difficult that unless you’re willing to chew glass for it, the chances of you being able to generate enough escape velocity to be relevant is almost 0. Be passionate. It’s an endlessly renewable source of fuel.

@OneHotCode1 i say bips

people who say beeps instead of basis points deserve a special place in hell

@sdav1986 Still fairly big positions in gold, silver, copper, and equities esp non US. Some oil.

@sdav1986 A much more enjoyable Feb vs Jan for me. Lower vol, more well behaved. Monday is going to be volatile..

Nice to read some good headlines about SA for a change 🇿🇦

Excellent news on TFSA, tax bands esp! Now we need the lifetime limit of R500k to rise as well.

Great day at the @HedgeNewsAfrica Symposium & always good catching up with colleagues and clients alike. Takeaway for me is that largest allocators likely to be IFAs & DFMs who have properly embraced alternatives to strengthen their equity/bond core.

@HML_Compounder @markcecchini Inflation plus 10 is crazy work.. even nominal 10, inflation plus 7 to 8 is going to take some doing from these levels

@markcecchini I hope that’s a nominal return and not after inflation…

my brother in Christ please do not assume a 10% average investment growth rate for long term planning

@investingidiocy @Fink_Money I was gonna say.. *this* professional trader absolutely uses R (coding)!

@Fink_Money I had to Google R thought it was a programming language

There is no professional trader that talks about R. They might talk about Sharpe, Sortino etc. I am pretty sure that van K Tharp wishes he never introduced the concept of R to retail traders now (and I know Tom Dante wishes people similarly hadn’t butchered the concept since it’s just a way of thinking, not anything truly statistical).

@CitywireSA covered our whitepaper on how trend-followers captured gold & silver’s epic rally. For balanced/equity investors looking to introduce risk managed exposure to non-core assets, feel free to reach out. Video on the paper here (4k+ views): youtu.be/uoqr3g61ALQ

@JulianKlymochko Not throwing the baby out with the bathwater. But this is why I prefer liquid alts. diversified risk premia over illiquidity premia every time imo.

Blue Owl just announced the sale of $1.4 billion of private credit loans (including, gasp, software loans!) to a group of institutional investors at 99.8% of par value. Meanwhile, its BDC prices imply its loan book at 73-78% of par value. $OBDC $OTF

@JohannBiermann1 Sir, you might have misspelled cortardo and espresso 🫣

Launching a new Coffee Index tomorrow, but would like to know what your preferred takeaway coffee is? If your favourite isn't here, I'm really sorry, but according to the internet, these are the four most popular drinks.

@ALBACapMgmt There are many reasons not to love South Africa.. but access to world class protein at reasonable prices ain’t one of them 🇿🇦

I know hindsight is 20/20, but it felt like a great deal back then as well! Yield curve was nice and steep meaning every month that passed you got a nice roll down giving you a capital kicker to the already attractive yield. If I'm playing devils advocate it's that the yield is still not too bad in real terms..

Feels crazy to buy a South African 10 year bond today that only yields 8%. Two years ago at 12%, yes, but this seems a bit on the low side.

@madaboutmarkets @the_gregdavies Top shelf rage baiting 😂

@the_gregdavies Holy crap - I have no words . Surely that must be a spoof account, no-one can be that stupid

Gold and silver just delivered a textbook trend-following case study. Full video 👉 youtu.be/uoqr3g61ALQ Trend, at its best, hunts outliers -> rides the way up -> doesn’t give it back on way down. In this vid, I show how they adjusted exposures from June ‘25.