Preview Mode Links will not work in preview mode

Flirting with Models

May 31, 2021

In this episode I speak with Guillermo Roditi Dominguez, managing director at New River Investments.

This was one of the more unique and wide-ranging conversations I have had on the podcast to date. We begin by discussing Guillermo’s approach to portfolio construction, which is heavily focused on the idea of under-writing risk. How he goes about achieving this, though, takes us from adjusted valuation measures to the positioning of large, systematic players and even to the importance of higher frequency tax data.

After discussing the macro framework, we dive into how decisions are made within equities and fixed income. Again, Guillermo stays consistent to his philosophy of underwriting risk and I found his example of allocating to mid-caps versus large-caps in 2020 to be particularly insightful.

While we spend a lot of the episode talking about under-writing risk, we end the episode with Guillermo’s view as to why the right tail is actually more difficult to manage. So make sure you stick around for that.

I hope you enjoy my conversation with Guillermo Roditi Dominguez.