This post examines an Absolute Return stack that layers diversifying return streams over a core 60 / 40 portfolio. The objective is steadier performance and a higher information ratio so that clients remain confident regardless of market direction.
This post explains how an “anti‑beta” stack can potentially narrow the depth and duration of portfolio drawdowns by adding a 20 percent overlay of diversifying strategies to a traditional 60 / 40 portfolio.
This piece examines how recent macro shocks have reshaped the landscape for carry, where drawdowns may conceal new sources of return. By viewing carry as the market’s hazard pay and applying return stacking, investors may access shifting opportunities without abandoning core allocations.
This article draws a provocative parallel between today’s U.S. macro environment and the structural constraints long familiar to emerging market investors – high debt, limited policy flexibility, and currency vulnerability.
Advisors seeking to diversify more effectively may want to consider new tools that build on the principles of the 60/40 portfolio – while enhancing the “40” to make it potentially more robust.
By using tools that combine traditional asset class exposures – such as those that seek to deliver 100% exposure to equities and 100% exposure to bonds in a single position – advisors can overlay core exposures back onto an alternative-heavy portfolio.