The Special Situation Cast

Corey Hoffstein On The Liquidity Cascade Changing Markets And How He's Fighting Back

December 14, 2020 Bram de Haas Season 1 Episode 17
The Special Situation Cast
Corey Hoffstein On The Liquidity Cascade Changing Markets And How He's Fighting Back
Show Notes

I just interviewed Corey Hoffstein, Chief Investment Officer and co-founder, of quant shop Newfound Research. Corey has a background in computer science Newfound Research is a quantitative asset management firm based out of Boston, MA. Its first focus is on managing risk and the firm developed a lot of knowledge around the trend-following approach.

Corey recently wrote a very interesting quarterly letter and published a fascinating piece of research called The Liquidity Cascade a while back. 

In the liquidity cascade, Corey dives into the effect of a number of theories about market distortion and concludes these together result in a Lollapalooza effect on the market and S&P 500. These theories include Fed policy, flows into passive, market cash flows, and the effects of hedging needs. 

Ultimately, his research led Corey to think about designing a whole new portfolio framework.

Newfound Research
https://www.thinknewfound.com/

Corey Hoffstein Twitter
https://twitter.com/choffstein