Farouk Jivraj - The Art & Science of Using Alternative Risk Premia (S7E12)

Corey Hoffstein engages with Farooq Jhaveraj to discuss his insights and experiences with Fidelity's Alternative Risk Premia (ARP) platform. They explore the key learnings and objectives of alternative risk premia, alongside Fidelity's strategic approach to strategy selection and avoiding overfitting. The conversation delves into Farooq's five-step portfolio design process, collaboration with banks, and defining long-term investment objectives. They also cover constructing robust peer groups, strategy selection, and transitioning risk management. The episode examines trade-offs in replication and diversification strategies, the role of alternative risk premia in asset allocation, and ongoing evaluation of portfolio sizing and P hacking.