RR

To carry on the trend of amazing guests on the show, today we welcome Antti Ilmanen. Antti is the co-head of the Portfolio Solutions Group at AQR, and the author of a couple of really impactful books that we highly recommend. His most recent is Investing Amid Low Expected Returns, and in today's chat, we get to hear all about the ideas contained in its pages, and the most important moments in his career that have shaped his philosophy. Antti received his PhD in Finance from the University of Chicago and has had a long career of working with high profile names that you might recognize from past episodes of this podcast. Our guest talks about the need for cultivating your patience in relation to your investment portfolio and shares many other great pieces of practical advice that you can implement today. We delve into some bad investment habits that Antti noted in his book and also touch on the usefulness of bonds, illiquid assets, trend following, and much more. Be sure to tune in today to hear all that this great mind has to offer.
Timestamps:
0:00 Intro
4:48 Historical Data & Expected Returns
14:24 Usefulness of Bonds
21:54 Illiquid Assets
29:02 Impact & Response to Low Expected Returns
44:48 Trend Following
48:37 Defensive Style Premium & Quality
51:36 Carry vs Value
53:26 Risk & Style Premia
1:04:52 Sticking to your Investment Strategies During Periods of Poor Performance & Antti's "Premier Bad Habit"
1:13:45 The Impact of Ken French on his Career & his Definition of Success
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Books From Today’s Episode:
Investing Amid Low Expected Returns: Making the Most When Markets Offer the Least - amzn.to/3wvikro
Expected Returns: An Investor's Guide to Harvesting Market Rewards - amzn.to/3ls53cG
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[@Martin-qb2mw]

It's true that most conversations are great, this one is no exception. I hope you bring Antti back if he writes another book.

[@piranhaa2]

Great material guys! Keep up the amazing work you're doing :)

[@bjohns347347]

I enjoyed listening to what Antti had to say. I agree that we shouldn’t expect historically average returns going forward. He has a good point about adding diversification with a long-short portfolio. The higher cost and active component would probably make it not worth it, but it’s an interesting concept.

[@AnhNguyen-bi6vg]

Excellent episode! Thank you

[@crf1509]

Hyvä Antti! Mahtavaa. Good work. Greetings from Finland.

[@filippxx]

This guy is a great wake-up call that capital preservation is important as well as opposed to continuous capital growth narative preached generally by CZcams.

[@TorFyksen]

Super interesting episode with Anti!

[@muffemod]

Yo I was here and YOU CAN'T DO A FUCKING THING ABOUT IT!