Chhabra: Low-beta portfolios protect institutions from painful organizational cuts
Ashvin Chhabra · Ashvin Chhabra – The Aspirational Investor (Capital Allocators, EP.260) · Jul 4, 2022 · at 54:07
Ashvin Chhabra, CIO of Euclidean Capital, explains why Jim Simons emphasizes a low-beta portfolio framework to preserve institutional liquidity.
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“I think people often forget liquidity, the fact that this institution must be able to survive the ups and downs. And I think this is where the low beta framework that Jim has always been a proponent of is very useful, in that when you have a high beta framework, You are getting good return, and therefore when the markets are up, it's compounding in a great way. But then when the reverse happens, there are very painful changes that need to be made to the institution.”
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