Unlocking the Power of Return Stacking with Corey Hoffstein: Newfound Research Insights

In the latest episode of The Algorithmic Advantage, we are thrilled to host Corey Hoffstein, co-founder and Chief Investment Officer at Newfound Research. Corey brings over 15 years of experience, pioneering innovative investment solutions that merge capital efficiency with trend-following strategies. His unique approach to ETF management has garnered attention across the industry, and we were lucky enough to dive deep into his expertise.

What You’ll Learn:

1. The Concept of Return Stacking
   Corey unpacks his ground-breaking work on return stacking, a strategy that allows investors to stack alternative investment strategies—like managed futures—on top of traditional assets like stocks and bonds. This approach maximizes returns while minimizing risk, without overhauling an existing portfolio. He shares how these innovative ETFs are a clever reimagining of the classic portable alpha strategy used by institutional investors for decades.
2. Trend Following & Capital Efficiency
   We explore Corey’s passion for trend following, digging into how managed futures have a place in modern portfolios. Corey discusses how he’s integrated capital efficiency into Newfound’s ETF suite, offering investors access to strategies that boost returns without requiring massive allocations away from traditional investments.
3. The Business of ETFs: Challenges and Successes
   Corey shares his journey of launching a series of highly successful ETFs and the lessons learned from over a decade of growth. He emphasizes the importance of creating investment products that align with investor needs while maintaining a careful balance between optimization for returns and accessibility for retail and institutional investors alike.
4. Top-Down vs. Bottom-Up Trend Following
   For the systematic traders out there, Corey explains the difference between top-down replication, which models macro factors driving trends, and bottom-up replication, which digs deeper into the specific markets and signals. This dual-layered approach makes Newfound’s ETFs robust and adaptable to various market conditions.

Why You Should Listen:

If you’re an investor, portfolio manager, or just passionate about systematic trading, this episode is a goldmine of practical insights. Corey walks us through not only the intricacies of his strategies but also the broader implications for managing volatility and capturing outlier returns in a challenging market environment.

In a conversation filled with both actionable ideas and big-picture investment wisdom, Corey’s perspective is one every serious trader should hear.

? Tune in to the full episode by clicking here: 

Whether you’re an ETF enthusiast, a trend follower, or an investor curious about capital efficiency, this episode offers something for everyone.

Stay ahead of the curve and equip your portfolio with cutting-edge strategies. Don’t miss out!