Today Rusty & Robyn are joined by Michael Arone, Chief Investment Strategist and Managing Director at State Street Global Advisors. Michael is the Chief Investment Strategist for the SPDR® Americas Business at State Street Global Advisors. He is responsible for expanding State Street Global Advisors’ footprint and thought leadership effort through frequent contributions to the financial news media, speaking engagements and client interactions. Michael is a highly regarded speaker at industry conferences and is the author of several articles related to investment management practices. He is a member of the firm’s Senior Leadership Team.

During his more than 20-year career as an investment professional, Michael has served as State Street Global Advisors’ Global and EMEA Head of Portfolio Strategy as well as a senior portfolio manager in the Global Active Quantitative Equity Group. He has substantial experience developing long-only and long-short quantitative strategies and managing investment portfolios using quantitative disciplines. Michael has worked extensively with the firm’s global institutional and intermediary clients to help them identify investment solutions that enable them to meet their long-term financial goals.

Key Takeaways

• [03:28] - Michael’s professional background and highlights from his time at State Street.
• [04:40] - What really makes State Street stand out in this industry?
• [06:28] - What is the primary risk that Michael thinks investors are overlooking right now?
• [08:06] - Even though The Fed is still suggesting it will cut rates soon, it hasn’t made any moves yet, so what should the takeaway be from that?
• [09:27] - Why are growing government deficits and rising, bipartisan protectionism often two ingredients in Stagflation?
• [10:52] - How does Michael assess the current inflation trend?
• [13:02] - What are the potential odds that Stagflation actually occurs?
• [14:32] - How can investors better prepare for all possibilities, Stagflation or otherwise?
• [16:10] - What is driving the potential liquidity squeeze?
• [19:58] - Why don’t investors know more about the surprising outperformance of small and mid cap stocks?
• [21:20] - What should investors know about market concentration and “The Magnificent 7?”
• [23:10] - What are some surprises that Michael has noticed in long maturity treasuries?
• [25:30] - What is currently Michael’s favorite investment idea?

Quotes

[14:04] - “Maybe there’s only a 20% chance [of Stagflation], but it’s a chance that investors are not currently pricing in and they’re underestimating. They are pricing it as a 0% chance, and I think it is probably above that.” ~ Michael Arone

[26:56] - “The top 5 companies in the S&P 500, their market capitalization is more than 3.6x all of small cap put together. That surpasses where we were at the height of the Technology, Media and Telecom bubble, so I think you’ll get some mean reversion…I think small cap stocks are…under loved and that’s one of my favorite ideas for 2024.” ~ Michael Arone

Links

• Michael Arone on LinkedIn
• “Lose Yourself” by Eminem
• State Street Global Advisors

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Compliance Code: 0972-OPS-4/22/2024

Today Rusty & Robyn are joined by Brian Storey and Andrew Goins of Brinker Capital, Deputy Chief Investment Officer and Senior Portfolio Manager at Brinker Capital respectively.

Key Takeaways

• [03:47] - Andrew’s and Brian’s professional backgrounds and what they do in their current positions.
• [09:05] - Who have provided some of their key philosophical insights over the years and how have those influences impacted their style of investing?
• [12:10] - What is the elevator pitch for what the Destination Strategies at Brinker Capital are and what they are trying to accomplish?
• [12:55] - How do the above strategies differ from other multi-asset strategies that are available?
• [17:04] - How do they hone the art of Portfolio Management and how do Brian and Andrew interface in their day to day?
• [21:17] - Learn a bit more about the due diligence process for Brinker’s Destination strategies.
• [25:25] - When searching for managers, what are some of the key attributes they look for and, on the flip side, what are some reasons why they might terminate a manager?
• [27:47] - What is some of the risk management research that goes into their Destinations portfolio?
• [32:11] - What market environments might these strategies perform best in and vice versa?
• [37:49] - What are each of their favorite investment ideas currently?

Quotes

[16:03] - “[Brinker’s] use of…diversifying asset classes or strategies [sets us apart]...As we look at some of our peers…they tend to be much more traditional asset classes, more focused on equities and Fixed Income…That’s been a hallmark of Destinations at Brinker Capital for many many years and we do think that is both an area where we add a lot of value but [is also] just a differentiator from our peers.” ~ Andrew Goins

[27:01] - “[When selecting an asset manager] you…want to see, you know, curiosity, creativity [and] the ability to adapt the process to potentially changing market conditions or different environments…being able to be flexible in their approach [is so important]...and can benefit the portfolio performance going forward” ~ Brian Storey

Links

• “Into the Great White Open” by Tom Petty and The Heartbreakers
• “The Gambler” by Kenny Rogers
• Orion Wealth Management

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Custom Indexing offered through Orion Portfolio Solutions, LLC a registered investment advisor.

Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor. Wealth Management services are offered by Orion Portfolio Solutions, LLC d/b/a Brinker Capital Investments a registered investment advisor. Orion Portfolio Solutions, LLC is a wholly owned subsidiary of Orion Advisor Solutions, Inc. (“Orion”)

The Destinations Funds are distributed by Foreside Fund Services, LLC.

Compliance Code: 0969-OPS-4/22/2024

Today Rusty & Robyn are joined by Ricky Schneider, Vice President and Senior Portfolio Manager at Fort Washington Investment Advisors. He is responsible for the commercial mortgage-backed securities portfolios for both Western & Southern Financial Group and third-party institutional clients. Schneider joined the firm in 2019. Prior to Fort Washington, he was with Mesirow Financial in Chicago where he was a Managing Director responsible for trading CMBS and other structured products. He also has previous experience at Loop Capital Markets, Lehman Brothers Asset Management, and Lincoln Capital Management.

Key Takeaways

• [02:42] - Ricky’s professional background and what led him to the investment industry.
• [03:57] - Fort Washington’s tagline is “uncompromised focus.” What is the significance of this for the firm and what really sets them apart in the industry?
• [05:03] - A simple, functional definition of Securitized Income and Structured Products.
• [06:05] - What are RMBS and CMBS and how do they differ? What about ABS?
• [07:35] - What are CLOs?
• [08:50] - How large are each of the above Fixed Income segments in terms of the overall Bond Market?
• [10:01] - What is the value proposition for each of these segments and why would investors choose these structured opportunities over treasuries or corporate bonds?
• [11:07] - What are some of the risks when investing in this part of the Fixed Income market? What are some scenarios in which they might underperform the overall bond market?
• [12:35] - How has the Securitized market changed since the Global Financial Crisis of 2008?
• [15:41] - Does Ricky have a favorite idea in the Securitized Income sector?
• [16:46] - What part of an investor’s bond allocation might this sector replace?
• [17:51] - Rules of thumb for sizing a position of Structured opportunities within a Fixed Income allocation?
• [19:08] - Why does Securitized Income work in an ETF structure and what are the advantages of this?
• [20:38] - What to avoid and what to embrace in commercial real estate and CMBS?
• [24:20] - What is Ricky’s favorite investment idea at the moment?

Quotes

[12:20 ] - “..There is also inherently more risk the further you go down the capital structure in any of these sectors we are talking about” ~ Ricky Schneider

Links

• Ricky Schneider on LinkedIn
• Fort Washington Investment Advisors
• “I And Love And You” by The Avett Brothers

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Compliance Code: 0910-OPS-4/15/2024