Seeking Alpha

The Asset Allocator: Elm Partners' Victor Haghani On 'Active Index Investing' (Podcast)

by: SA For FAs
Summary

Victor Haghani, founder of Elm Partners and previously a co-founder of the Long-Term Capital Management hedge fund, is an advocate of “active index investing."

That is to say, he wants the passive advantages of low cost and efficiency, but with the ability to actively shift asset allocation as markets shift.

This is Haghani’s solution to “the missing billionaires” problem, which holds the failure to harvest market returns, may be why today’s billionaires are fewer than population statistics would have foretold.

Haghani discusses his own advisory business model at length.

Listen on the go! Subscribe to the SA for FAs podcast by clicking on Apple Podcasts, Google Play, Spotify or Stitcher.

Victor Haghani, founder of Elm Partners and previously a co-founder of the Long-Term Capital Management hedge fund, advocates “active index investing.”

In this podcast interview (14:20), Haghani argues that marrying the low cost and efficiency of passive indexes to a rules-based asset-allocation discipline can provide investors with the growth they need at a fraction of the cost of active investing.