About this episode
We’re back! Today’s podcast features The Derivative show stoppers Rodrigo Gordillo and Adam Butler of Resolve Asset Management discussing the carry trade and its
applications in investment strategies. They begin by explaining what the carry trade is and discussing common misconceptions around it. They then dive into different types of carry that can be found in various asset classes like bonds, commodities, currencies, and equities. The guests discuss how carry strategies can be implemented, either on their own or as part of a larger multi-strategy
portfolio. They also compare carry to trend following strategies and debate the pros and cons of each approach. The podcast explores how a diversified carry
factor can provide returns with reduced risk when combined with other strategies. Rodrigo and Adam explain how carry fits into their risk parity framework and can be used to tilt allocations. They also discuss integrating carry and trend signals to lower trading costs. Gear up to receive that spoonful of sugar that indeed will make the medicine go down with tons of insight and access to some great content as an investment factor and
perspectives on its role in multi-asset portfolios.
Chapters:
00:00-01:31= Intro
01:32-10:31= What’s a carry trade?
10:32-20:34= Types of carry in different asset classes & Implementing strategies
20:35-33:11= Carry vs Trend & portfolio applications of carry
33:12-49:05= Combining carry & trend: How does it fit together?
49:06-01:04:54= Why Carry? The future of carry strategies
From the episode:
The Rise of Carry(Book)
The Carry Trade post
Get Stacked Podcast
ReSolve Riffs Podcast
Setting the Risk Parity Record Straight - The Derivative episode
Researching the Risks of return stacking with Corey Hoffstein & Rodrigo Gordillo - The Derivative episode
Asset Allocation, AI, and the Alpha process with Resolve - The Derivative episode
