Eric Crittenden on The Meb Faber Show
Eric Crittenden, CIO of Standpoint, joins Meb Faber on a May 2020 episode of The Meb Faber Podcast. Eric and Meb discuss their approaches to navigating the volatility we’ve seen in 2020 with the Corona Crash and the subsequent rebound in equities. They also talk about why they feel investors are slow to adopt alternative investments and how the industry has fallen short by failing to deliver products to investors that are easy to hold on to. Eric also shares stories about why he started his new firm, Standpoint, and why he believes an all-weather investment approach can deliver what investors need in their portfolios without dealing with the psychological hardships of traditional diversification.
- The math strongly supports allocating to alternatives like managed futures but many investors have accepted that dealing with uncorrelated investments is not worth the diversification benefit.
- Eric believes it is the role of the asset manager to deliver an effective and acceptable return stream to the investor. Eric has delivered effective, but not acceptable results in the past; now at Standpoint, he is combining effective and acceptable in an all-weather product.
- At time stamp 9:30 Eric discusses a few experiments he has done with investors in the past. These experiments reveal that when investors are objective they are more attracted to all-weather style investing.
That statement, from a person with very high credibility, and all the data to back-up his assertion, had almost no impact on the world.
Maybe we’re supposed to deliver something that people need and can tolerate.