LTCM Co-Founder on Risk, Leverage & Simplicity | Victor Haghani

In this episode, founder of Elm Wealth and co-founder of LTCM Victor Haghani shares lessons from Long-Term Capital Management and contrasts today’s highly levered hedge-fund world with LTCM’s era. He also explains Elm’s Dynamic Index Investing framework and why simplicity and discipline outperform complexity and return-chasing over time. Enjoy!

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Timestamps:

(00:00) Introduction

(01:04) Insights from Victor’s Storied Career

(09:22) Today’s Market vs the 90s

(16:32) Grayscale Ad

(17:11) Fat Tails & Return Chasing

(28:41) Grayscale Ad

(29:29) Is Discretionary Macro a Fool’s Game?

(37:42) Portfolio Construction & Managing Risk

(44:33) Balancing Risk, Sizing, & Expected Returns

(50:15) What is Good Diversification?

(55:55) Exotic Forms of Diversification

(59:52) Final Thoughts

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