In episode 82, Alex Proimos speaks with Chris West, co-founder of Context Capital Consulting and former chief investment officer at WA Super before its merger with Aware Super.
This episode discusses the biggest issue in portfolio construction: low base rates and corresponding depressed risk premia across all asset classes. We cover how risk is multi-faceted, but there will be nuances given their context and how risk is path-dependent for each investor. The conversation goes into defining success and failure for various investor types and how it impacts portfolio construction. Finally, we discuss the changing nature of asset correlations, derivative programs, hedging, asymmetric payoffs and whether the role of cash in portfolios?