Janus Henderson Co-Heads Discuss Compounding Through Risk Management
This recommendation is based on publisher episode information. In S7E35 of Flirting with Models, Philip and Allan Maymin, Co-Heads of Global Asset Allocation at Janus Henderson, discuss improving compound growth by managing risk rather than chasing higher returns.
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Episode S7E35 of the podcast 'Flirting with Models' features Philip and Allan Maymin, Co-Heads of Global Asset Allocation at Janus Henderson. They manage the asset allocation group founded by Nobel laureate Myron Scholes, bringing diverse backgrounds from LTCM, academia, and high-frequency trading. The show aims to meet the investors who research and manage quantitative investment strategies.
According to the publisher's show notes, the guests argue that "people live in an average return world, and they ought not." They posit that what matters for investors is compound growth, and the surest way to improve it is not chasing higher returns but managing risk, as drawdowns destroy compounding. The episode also covers how they use options markets to extract forward-looking risk signals and propagate them across more than 4,000 assets.
This selection is suitable for institutional investors and quant practitioners interested in asset allocation methodologies, specifically optimizing long-term compounding through risk control. Readers should listen for discussions on translating theory into practice and using derivative market signals for large-scale portfolio construction.