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Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

@choffstein

14 Sep

1/ What is "return stacking" and how is it different than stretching for returns?

(From our paper investresolve.com/return-stackin…)

A quick 🧵... (I know, I know...)

2/ The expectation of low real returns going forward puts a significant burden on long-term investors striving to meet future needs.

e.g. Endowments who are making annual withdrawals, pensions that have future liabilities, and individuals who are saving for retirement.

3/ A phenomenon that we've witnessed over the last decade is investors moving up the risk curve by either (1) increasing equity exposure, (2) increasing credit risk (lower quality bonds), or (3) increasing liquidity risk (e.g. real estate, private equity or private credit).

Read 19 tweets

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

@choffstein

9 Sep

https://twitter.com/choffstein/status/1435214053555769351

0️⃣ I've received a couple questions about this paper and tax implications of this approach.

I'm not an accountant, but I think there are three main points to consider about tax efficiency and return stacking.

https://twitter.com/choffstein/status/1435214053555769351

1️⃣ Some funds achieve capital efficiency in a tax efficient manner, and some do not.

e.g. $PSLDX buys bonds and overlays with S&P 500 futures. That's very tax inefficient, since those S&P 500 futures are taxed at a 60% long-term / 40% short-term rate.

NTSX, on the other hand, buys the S&P 500 and then overlays with U.S. Treasury futures. Those futures are also taxed at the 60/40 rate, which *can* be more tax advantageous than buy-and-hold bond exposure, where the majority of the return (yield) gets taxed at ordinary income.

Read 8 tweets

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

@choffstein

13 Aug

the jpegs look rare

https://twitter.com/punk6529/status/1424127515476598796

1/ Some interesting threads and resources as it relates to NFTs...

"What could possibly be important about a JPG, a silly meme?"

https://twitter.com/punk6529/status/1424127515476598796

https://twitter.com/0x650d/status/1424779795892690946

2/ "Why did I spend $7MM on 104 floor punks?"

https://twitter.com/0x650d/status/1424779795892690946

Read 10 tweets

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

@choffstein

10 Aug

@vixologist

@vixologist @AttainCap2 @GestaltU I interpret 🍋’s point as: forest fires clear out underbrush that cause forest fires.

I interpret @GestaltU’s point as reflexive: if everyone prepares for the last crash, then it’s almost impossible for a crash like it to occur!

@vixologist

@vixologist @AttainCap2 @GestaltU I don’t disagree with either of those points. Adam’s point is one of the reasons that many on here – myself included – were saying that it would be hard to see a post-election crash last November.

@vixologist

@vixologist @AttainCap2 @GestaltU I still think a lot of the same dynamics permeate the system (namely, excessive risk taken driven by low interest rates; adoption of systematic strategies; influence of options on underlying) – but the build up of risk that 🍋 alludes to may be gone for some time.

Read 4 tweets

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

@choffstein

9 Aug

1/ Back in 2001, I used to play this game called Runescape (runescape.com)

(Which is still very much around, but looks nothing like it did when I played.)

2/ There was a whole world to explore, quests to complete, skills to learn, and players to meet.

3/ I sank hundreds of hours in the mines, clicking on rocks to mine ore, then hauling it back to town to smelt and then crafting it into armor to sell.

Read 14 tweets

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

@choffstein

25 Jul

1/ I constantly get questions from people looking to go into graduate financial engineering (“FE”) programs.

I thought I’d compile my thoughts into a thread 🧵

2/ For context, I graduated from Carnegie Mellon’s MS in Computational Finance program in December 2010.

It was the world’s first FE program and, at the time, ranked #1.

Everything that follows is just my opinion based upon my experience.

3/ What are these degrees? They’re interdisciplinary studies (typically finance, mathematics, and computer science) that try to prepare someone for a career as a “quant.”

Read 23 tweets

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Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

Corey Hoffstein 🏴‍☠️ (🖼, 🛍)

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