Podcast appearances and mentions of phil mcdonald

Play Episode Listen Later Oct 21, 2023 102:49

Phil McDonald steps in for Al Pscholka this week as Lakeshore heads on the road at Portage Central, Phil was joined by Denny Kniola and had the call of the game on 97.5 Y-CountrySee omnystudio.com/listener for privacy information.

football portage lakeshore phil mcdonald

Lakeshore Lancer Preview is brought to you by Lazer Graphics! Give them the stuff they want from Lazer Graphics! LazerGraphics.com! Phil McDonald preview tonight's final game of the regular season against Portage Central. See omnystudio.com/listener for privacy information.

football preview lancer preview week portage lakeshore phil mcdonald

The Coaches - 08/26/23

Play Episode Listen Later Aug 26, 2023 116:30

The Coaches with Phil McDonald and Bret Witkowski, from Full Circle Cafe and Espresso Bar in Stevensville from Saturday, August 26, 2023See omnystudio.com/listener for privacy information.

coaches stevensville phil mcdonald

The Coaches - 08/26/23

Play Episode Listen Later Aug 26, 2023 116:30

The Coaches with Phil McDonald and Bret Witkowski, from Full Circle Cafe and Espresso Bar in Stevensville from Saturday, August 26, 2023See omnystudio.com/listener for privacy information.

coaches stevensville phil mcdonald

Bud & Alley's Dave Rauschkolb + Special Guest Phil McDonald

SOWAL House

Play Episode Listen Later Jun 21, 2023 92:08

In this episode of the SOWAL House podcast, we had the privilege of hosting a true local celebrity and business icon, Dave Rauschkolb. As the owner of Bud & Alley's restaurant in the picturesque town of Seaside, Florida, Dave shares the fascinating origin story of this beloved establishment and takes us on a journey through his remarkable journey as a restaurateur in one of the most beautiful beach towns on earth. We delve into the captivating tale of Bud & Alley's, discovering the inspiration behind its creation and the values that have guided Dave throughout the years. The restaurant has become a cherished institution in Seaside, offering not only exceptional dining experiences but also serving as a gathering place for the community. Dave's commitment to creating a welcoming atmosphere and providing top-notch cuisine shines through in every aspect of Bud & Alley's. Beyond his success as a restaurateur, Dave Rauschkolb is also known for his passionate advocacy for beach protection. We discuss his efforts in raising awareness about the preservation and conservation of the natural beauty of the beach, highlighting the importance of sustainability and responsible tourism. Dave's dedication to protecting and enhancing the local environment demonstrates his deep love for the community and its surroundings. Being a restaurateur in one of the most stunning beach towns on earth comes with its own unique challenges and rewards. Dave shares his insights and experiences, discussing the dynamics of running a business in a place where people come to unwind and enjoy the beauty of nature. We explore the symbiotic relationship between Bud & Alley's and the natural surroundings, as well as the role the restaurant plays in creating memorable experiences for visitors and locals alike. Joining us as a special guest in this episode is Phil McDonald, Dave's business partner from Black Bear. Phil's presence adds an additional layer of culinary expertise and insight to the conversation. Together, they provide a comprehensive perspective on the local dining scene and the symbiosis between food, community, and the stunning beach environment. Prepare to be inspired by the stories of entrepreneurship, advocacy, and culinary delights as we delve into the origin story of Bud & Alley's, Dave Rauschkolb's beach protection efforts, and the joys and challenges of being a restaurateur in one of the most breathtaking beach towns on earth.

alley black bears seaside phil mcdonald

Black Bear's Phil McDonald

SOWAL House

Play Episode Listen Later Jun 14, 2023 70:07

In this episode of the SOWAL House podcast, we had the pleasure of hosting Phil McDonald, the creative force behind Black Bear, a beloved local bakery and coffee shop in South Walton. Join us as we uncover the captivating origin story of Black Bear and delve into the inspiration behind its name. We also explore Phil's incredible partnership with Dave Rauschkolb and unravel the secrets behind his unconventional approach to baking bread and cooking pizza. Phil takes us on a journey through the birth of Black Bear, sharing the passion and determination that fueled his vision for creating one of the best bakery and coffee shops in South Walton. We learn how the name "Black Bear" was chosen, symbolizing strength, resilience, and a deep connection to nature. Phil's dedication to his craft is palpable, evident in the exceptional quality of the pastries and coffee served at Black Bear. A highlight of the conversation is Phil's unique experimentation with baking bread in a pizza oven and later cooking pizza in a bread oven. Phil's willingness to push boundaries and explore unconventional techniques showcases his culinary expertise and adventurous spirit. The partnership between Phil McDonald and Dave Rauschkolb is an integral part of Black Bear's success story. We explore the remarkable collaboration between these two culinary visionaries and how their combined talents have elevated Black Bear to its esteemed status. Phil shares insights into their shared values of community, hospitality, and sustainability, emphasizing the importance of creating a warm and welcoming space that goes beyond just serving delicious food and coffee. Join us for an engaging conversation filled with stories of inspiration, collaboration, and gastronomic delights. Discover the origin story of Black Bear, unravel the meaning behind its name, and learn about the extraordinary partnership between Phil McDonald and Dave Rauschkolb. Prepare to be captivated by Phil's adventurous baking techniques and the delectable treats that have made Black Bear a cherished destination for locals and visitors in South Walton.

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Alternative Investments | Part Two: How Can They Mitigate Risk in Your Portfolio?

Play Episode Listen Later Jun 8, 2023 13:58

Alternative Investments are not just "cool" or intriguing products to own. In truth, they have the potential to help you endure tumultuous markets. In this episode, we are joined once again by Philip McDonald, CFA, CAIA, Managing Director of Research Investments & Portfolio Manager, to discuss how Alternative Investments can mitigate risk in your portfolio. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. 0 00:00:06.890 --> 00:00:09.120 Hello, this is Tom Romano with Unfiltered Finance. 1 00:00:09.270 --> 00:00:13.400 Welcome back to part two on our discussion of alternative investments here with 2 00:00:13.400 --> 00:00:14.360 us as Phil McDonald, 3 00:00:14.430 --> 00:00:18.720 portfolio Manager and managing Director of Investments at Symmetry Partners. 4 00:00:18.720 --> 00:00:19.760 Phil, welcome back. 5 00:00:20.020 --> 00:00:21.400 Thanks for having me back. Tom, 6 00:00:21.880 --> 00:00:24.880 I think we're getting a lot of questions from investors and and advisors because 7 00:00:24.880 --> 00:00:28.000 of the fact that you look at the performance of some of these alternative asset 8 00:00:28.000 --> 00:00:30.920 classes in a year like 2022. However, 9 00:00:31.640 --> 00:00:35.680 I think we would caution our listeners to, to not chase returns, 10 00:00:35.860 --> 00:00:40.040 and it's more of a strategic allocation that you wanna hold in your portfolio 11 00:00:40.140 --> 00:00:41.120 for a long duration. 12 00:00:41.600 --> 00:00:44.920 I would totally agree with that. And, and you have other considerations here, 13 00:00:44.920 --> 00:00:48.280 like broadly speaking, the expectation of the 60 40 portfolio, 14 00:00:48.300 --> 00:00:49.920 the return on the so-called 60 port, 15 00:00:49.930 --> 00:00:54.680 40 portfolio is likely going to be below average for in, in the near future. 16 00:00:54.780 --> 00:00:56.320 So you start to think about like, okay, 17 00:00:56.320 --> 00:01:00.200 my traditional portfolio isn't gonna return, you know, the 40 year average, 18 00:01:00.350 --> 00:01:03.080 what we saw decades ago. So where else might I be, 19 00:01:03.080 --> 00:01:06.280 might be able to go for returns and diversification? So you, 20 00:01:06.300 --> 00:01:10.440 you have that inflation surprises, you have increased correlation of, 21 00:01:10.460 --> 00:01:12.920 of traditional asset classes in the recent past. You know, 22 00:01:12.920 --> 00:01:16.360 of all these things kind of pointing to the benefit of having a diversified 23 00:01:16.710 --> 00:01:18.880 alternative strategy. And I would agree with you, 24 00:01:18.920 --> 00:01:22.280 I think you were alluding to the strength of 2022. It was, 25 00:01:22.300 --> 00:01:24.880 it was a very good year for certain alternative strategies. 26 00:01:25.000 --> 00:01:27.880 I would encourage people to think of that as an outlier year like that. 27 00:01:27.880 --> 00:01:31.280 That's not a year that can necessarily happen again unless all the bad things 28 00:01:31.280 --> 00:01:36.080 that happen in the equity and fixed income markets and with inflation kind of 29 00:01:36.490 --> 00:01:40.720 recur. So I, I would encourage people to almost think in terms of sharp ratio, 30 00:01:40.770 --> 00:01:43.600 right? So an excess return for a given volatility, 31 00:01:43.920 --> 00:01:47.320 a sharp ratio above 0.5, getting to maybe a 0.8, is, 32 00:01:47.340 --> 00:01:50.320 is the type of realm I think you should think of for, 33 00:01:50.380 --> 00:01:53.000 for a diversified alternative strategy. And, 34 00:01:53.180 --> 00:01:55.160 and to kind of put specifics on that, 35 00:01:55.380 --> 00:02:00.360 so something that has is managed to a 10% volatility or standard deviation that 36 00:02:00.360 --> 00:02:05.240 would be a five to 8% excess return on the risk-free rate. So, 37 00:02:05.660 --> 00:02:10.080 so you know, you're talking single digit excess returns for, uh, 38 00:02:10.200 --> 00:02:14.040 a strategy that's scaled to a 10% volatility. So, you know, 39 00:02:14.100 --> 00:02:16.480 to take people out of this expectation of, 40 00:02:16.780 --> 00:02:21.640 of a home run year kind of happening again, it's less likely to happen again. 41 00:02:21.660 --> 00:02:22.493 Gotcha. 42 00:02:22.900 --> 00:02:25.560 Um, just to clarify some of that, because I think that's some, 43 00:02:25.670 --> 00:02:28.880 some very important advice there. When we talk sharp ratio, 44 00:02:28.880 --> 00:02:32.000 the way I look at that is bang for your buck. Are you, 45 00:02:32.020 --> 00:02:35.960 are you getting the return for the risk that you are taking? 46 00:02:36.300 --> 00:02:37.720 And the higher the sharp ratio, 47 00:02:37.740 --> 00:02:39.800 the greater the return is for the risk that you're taking. 48 00:02:40.540 --> 00:02:44.800 And so when we're talking about, you know, years like 2022, which is an outlier, 49 00:02:44.810 --> 00:02:46.640 which I would agree, you know, 50 00:02:46.640 --> 00:02:51.640 investors could have alternatives in their portfolio for years with a trade off 51 00:02:51.640 --> 00:02:51.880 being, 52 00:02:51.880 --> 00:02:55.720 you might be getting single digit returns while the markets may be producing 53 00:02:55.720 --> 00:02:59.930 double digit returns. We don't know when the next 20, 22, 2 is gonna happen. 54 00:03:00.420 --> 00:03:05.280 But having an allocation of those alts will certainly help weather that storm. 55 00:03:05.820 --> 00:03:07.280 Uh, uh, totally agree. Yes. 56 00:03:07.380 --> 00:03:11.160 So I think a misconception here, and this is just from my conversations with, 57 00:03:11.160 --> 00:03:13.600 with advisors, investors alike, they think alternative strategies, 58 00:03:13.600 --> 00:03:15.000 they think returns. Mm-hmm. 59 00:03:15.080 --> 00:03:18.440 They think even tactical shifts into and hour. Exactly. Yeah. 60 00:03:18.460 --> 00:03:22.000 But what I'm hearing you say that this is more of a risk mitigating strategy 61 00:03:22.190 --> 00:03:24.000 than a return reaching strategy. 62 00:03:24.520 --> 00:03:28.080 I think it's, it's strongly risk mitigating from a diversification standpoint, 63 00:03:28.260 --> 00:03:30.320 but I'm not quite sure how 64 00:03:31.990 --> 00:03:34.760 Much you have to give up in returns. Okay. I mean, it, 65 00:03:34.880 --> 00:03:38.640 I I wouldn't necessarily say it, it's gonna hurt you over the long term. 66 00:03:38.760 --> 00:03:42.240 I think you need to think about the right portfolio you, you want to be in. And, 67 00:03:42.460 --> 00:03:46.000 you know, I dunno if you had a question here, but, uh, you know, there, 68 00:03:46.000 --> 00:03:50.200 there are some very specific use cases that I think make sense and that would be 69 00:03:50.520 --> 00:03:52.960 managing just the life cycle, 70 00:03:53.380 --> 00:03:58.280 how financial plans and asset allocations change as a person ages. Again, 71 00:03:58.380 --> 00:04:03.080 we, we have a finite kinda life here where we're earning and spending and maybe 72 00:04:03.080 --> 00:04:08.080 bequeathing and then preferences. So theoretically, as someone ages, 73 00:04:08.080 --> 00:04:11.640 they're the, the risk of their portfolio should, should come down over time. 74 00:04:11.640 --> 00:04:13.680 They're converting their human capital, 75 00:04:13.690 --> 00:04:17.200 their potential for earning during their career into financial capital. 76 00:04:17.200 --> 00:04:20.160 They're investing that hopefully they're being thoughtful about the 77 00:04:20.160 --> 00:04:23.760 diversification of, of, of those kind of two buckets and say, 78 00:04:23.760 --> 00:04:25.680 equity beta should come down as you age. 79 00:04:25.930 --> 00:04:28.080 Where do you go with that allocation in your portfolio? 80 00:04:28.640 --> 00:04:32.240 Historically and traditionally, someone would say, oh, fixed, fixed income, 81 00:04:32.240 --> 00:04:35.880 of course. But we've been seeing for a decade, you and I right, 82 00:04:35.930 --> 00:04:37.680 we're we're both nodding and smiling. 83 00:04:38.250 --> 00:04:43.120 There have been times when people were strongly opposed to increasing the fixed 84 00:04:43.120 --> 00:04:47.120 income allocation in their portfolio. So if it's just, you know, gas and break, 85 00:04:47.180 --> 00:04:49.360 you know, what do you do? You, you know, 86 00:04:49.360 --> 00:04:52.720 we've seen investors and advisors kind of freeze and, and say, oh, 87 00:04:52.720 --> 00:04:56.080 there's no solution here. But this third or fourth, right, 88 00:04:56.080 --> 00:05:00.560 with cash in the consideration bucket of allocation really opens things up. 89 00:05:00.620 --> 00:05:04.480 You can take down beta risk, uh, equity beta, 90 00:05:04.500 --> 00:05:09.000 and you can allocate and diversify not only into fixed income. 91 00:05:09.300 --> 00:05:10.100 Gotcha. 92 00:05:10.100 --> 00:05:13.640 And you, you know, we, I joke around saying it depends, right? We, 93 00:05:13.660 --> 00:05:18.080 we say that a lot here, um, because I also think it's a perfect portfolio. 94 00:05:18.340 --> 00:05:21.200 You know, we, we look at portfolios as being a series of trade offs. 95 00:05:21.580 --> 00:05:23.360 And so I immediately think, well gosh, you know, 96 00:05:23.360 --> 00:05:25.000 if you don't really give up any of the return, 97 00:05:25.000 --> 00:05:29.480 but you can definitely mitigate some of the risks through sharp ratio, 98 00:05:29.480 --> 00:05:32.920 as you said, like looking at that particular statistic, who, 99 00:05:32.920 --> 00:05:35.960 what are the trade-offs of, of investing in alternatives? And, 100 00:05:35.960 --> 00:05:38.920 and immediately I think, well, well, you're still, there's still cost, 101 00:05:39.030 --> 00:05:42.840 even though you can get lower cost alternative exposures, 102 00:05:42.840 --> 00:05:47.400 there's still a cost element to that. Um, and also, you know, 103 00:05:47.400 --> 00:05:50.320 we talk a lot about tracking error on the behavioral side, right? 104 00:05:50.380 --> 00:05:53.680 If you're gonna add an alternative asset class to your portfolio, 105 00:05:54.660 --> 00:05:58.080 but you're honed in on the s and p 500, you're, 106 00:05:58.080 --> 00:06:00.040 you're not gonna be tracking that index. 107 00:06:00.690 --> 00:06:01.220 Right? 108 00:06:01.220 --> 00:06:03.120 Is that, is that a correct way of thinking about it? 109 00:06:03.370 --> 00:06:04.040 Absolutely. 110 00:06:04.040 --> 00:06:07.600 And I'm glad you brought that up because not only are alternatives difficult to 111 00:06:07.600 --> 00:06:11.720 benchmark, there are some indices that I think, um, are, 112 00:06:11.740 --> 00:06:16.320 are relevant to a diversified, you know, conservative strategy. We, we, 113 00:06:17.220 --> 00:06:19.880 you know, we run an alternative strategy, uh, 114 00:06:19.880 --> 00:06:24.120 in different forms that is not seeking to, to be very volatile, right? 115 00:06:24.180 --> 00:06:28.040 So sub under that 10% volatility that I gave as, 116 00:06:28.180 --> 00:06:32.680 as the example to conceptualize a sharp ratio. So we, we, 117 00:06:32.740 --> 00:06:34.560 we don't even believe in a, uh, 118 00:06:34.560 --> 00:06:38.040 that high level of volatility in an alternative strategy. Um, 119 00:06:38.060 --> 00:06:39.280 but you raise a very good point. 120 00:06:39.300 --> 00:06:42.120 So not only are alternatives difficult to benchmark, 121 00:06:42.740 --> 00:06:44.880 but if you have alternatives in your portfolio, 122 00:06:45.860 --> 00:06:49.880 the appropriate benchmark for your portfolio should reflect 123 00:06:50.660 --> 00:06:55.480 the allocation you have. If it's 50% diversified equity, 124 00:06:56.770 --> 00:06:59.800 40% diversified fixed income, and 10% alts, 125 00:07:00.380 --> 00:07:04.880 you should probably benchmark yourself to a blended benchmark of a 126 00:07:04.880 --> 00:07:07.960 50, 40 10 mix of relevant indices. 127 00:07:08.540 --> 00:07:11.920 Not just look to the s and p 500, because again, 128 00:07:11.940 --> 00:07:14.440 you probably have a 0.5 beta in that portfolio. 129 00:07:14.980 --> 00:07:18.440 You don't want to compare yourself to something that is a 1.0 beta. 130 00:07:18.790 --> 00:07:22.880 Sure, sure. Absolutely. And you know, we, we talk a lot about, on this podcast, 131 00:07:23.480 --> 00:07:26.680 a lot of folks look at benchmarks to look at the performance, their portfolio, 132 00:07:26.740 --> 00:07:28.800 and I think that makes a lot of sense. But the true one, 133 00:07:28.800 --> 00:07:32.000 true benchmark is are you hitting your goals from a financial planning 134 00:07:32.000 --> 00:07:34.800 standpoint? Right? And so I think that's a better way to, to, 135 00:07:34.820 --> 00:07:38.640 to look at it versus just making sure that you may or may not be 136 00:07:38.990 --> 00:07:40.520 outperforming the s and p, 137 00:07:40.520 --> 00:07:44.400 which is a very visible benchmark out in the world today. 138 00:07:44.420 --> 00:07:47.560 And we can think the media outlets for that certainly. Right. 139 00:07:47.740 --> 00:07:50.680 So let's talk a little about, uh, allocation to alts, right? 140 00:07:50.680 --> 00:07:54.280 Let's say you have an investor, let's say it's 60% stock, 40% bond, 141 00:07:54.280 --> 00:07:58.400 maybe a small cash position in there. How should that investor consider adding, 142 00:07:58.820 --> 00:08:01.720 uh, alternatives to the portfolio? Is there a maximum amount you would put in? 143 00:08:01.740 --> 00:08:04.720 Is there a minimum amount? Would you take it from the stock side? 144 00:08:04.720 --> 00:08:07.440 Would you take it from the bond side? How does that work? And how should our, 145 00:08:07.460 --> 00:08:10.320 our listeners be conceptualizing adding that asset 146 00:08:10.320 --> 00:08:13.720 Class? So we, we have some opinions here, but I think in the end, it's, 147 00:08:13.720 --> 00:08:17.960 it's gonna be what is acceptable to the investor and what their financial 148 00:08:17.960 --> 00:08:22.520 advisors would recommend start the starting point matters. 149 00:08:22.900 --> 00:08:27.200 So if you're exceptionally conservative to start, say you're, 150 00:08:28.320 --> 00:08:31.980 you know, 10% equity in 90% fixed income, 151 00:08:32.260 --> 00:08:37.020 I think taking it ha having a a higher allocation alt might 152 00:08:37.450 --> 00:08:41.780 make more sense than if you were starting from the other end. So, uh, 153 00:08:41.840 --> 00:08:45.500 in terms of the distribution of returns and, and you know, 154 00:08:45.500 --> 00:08:47.980 the level of volatility of a diversified AL strategy, 155 00:08:48.250 --> 00:08:51.180 it's a little bit more similar to fixed income. It's, it's, 156 00:08:51.260 --> 00:08:54.540 I like to say those returns are fueled by different things. You know, it's not, 157 00:08:55.260 --> 00:08:59.200 you know, duration and credit risk and illiquidity type of stuff. 158 00:08:59.270 --> 00:09:02.840 It's other drivers that, that give you returns and alternatives. 159 00:09:02.860 --> 00:09:06.480 But our rules of thumb, which, you know, are for people to take or leave, 160 00:09:06.490 --> 00:09:11.000 would be maybe up to about 25% if you're starting from a very conservative, uh, 161 00:09:11.000 --> 00:09:14.800 portfolio. And if you're starting from a very aggressive portfolio, 162 00:09:14.830 --> 00:09:18.240 just say someone's a hundred percent equity invested in says, ah, 163 00:09:18.240 --> 00:09:22.160 I want to add malts to this portfolio, but I don't like fixed income. Um, 164 00:09:22.360 --> 00:09:23.480 I know a few of those, maybe, 165 00:09:24.210 --> 00:09:26.560 Maybe something more in the realm of 15%, 166 00:09:26.800 --> 00:09:31.560 I think lower than 10% allocation of anything to the portfolio is gonna have a, 167 00:09:32.120 --> 00:09:35.760 a, a limited effect on, on the outcome, right? 168 00:09:35.940 --> 00:09:40.200 So 10 percent's probably our general starting point to add something and, and, 169 00:09:40.260 --> 00:09:43.840 and see, uh, beneficial effect to the portfolio and, 170 00:09:43.980 --> 00:09:46.080 and where we've landed on where to fund it from. 171 00:09:46.080 --> 00:09:47.640 So I didn't forget that part of your question, 172 00:09:48.290 --> 00:09:52.560 where believers in prorata from the, 173 00:09:52.700 --> 00:09:53.720 the asset allocation, 174 00:09:54.260 --> 00:09:58.080 so if you're a 60 40 investor and you put say, 175 00:09:58.080 --> 00:09:59.560 20% alternatives, 176 00:10:00.010 --> 00:10:04.880 60% of that should be probably funded from a reduction in inequity 177 00:10:05.060 --> 00:10:07.960 and 40% from a reduction in fixed. And they go, again, 178 00:10:07.960 --> 00:10:12.320 these are starting rules of thumbs. I I am very familiar with people who, 179 00:10:12.910 --> 00:10:17.400 because that returns distribution to alts, you know, the volatility and the, 180 00:10:17.540 --> 00:10:22.520 and kind of the average return to the distribution to alts is a little 181 00:10:22.520 --> 00:10:24.520 more similar to fixed income than it is to equity. 182 00:10:24.760 --> 00:10:29.160 I know folks who want to take 100% on a fixed income, that is an approach, 183 00:10:29.420 --> 00:10:33.800 but if you think about that, you've done nothing to reduce your equity risk. 184 00:10:34.220 --> 00:10:37.920 So if someone is, again, aging life cycle is a consideration here, 185 00:10:38.760 --> 00:10:41.840 diversifying both systematic, traditional, 186 00:10:41.840 --> 00:10:43.600 systematic exposures of equity and fixed, 187 00:10:44.660 --> 00:10:48.160 we think taking from both makes a lot of sense to fund that ALT's position. 188 00:10:48.410 --> 00:10:50.640 There are exceptions, you know, there, there are, you know, 189 00:10:50.690 --> 00:10:54.560 there are people who have different savings or different, you know, 190 00:10:54.560 --> 00:10:58.880 sources of income, maybe people with three pensions, you know, like who, uh, 191 00:10:58.980 --> 00:11:02.280 who look a little different from an average investor. So again, 192 00:11:02.280 --> 00:11:04.840 individual specifics need to come into play, but those, 193 00:11:04.840 --> 00:11:07.720 those are my starting rules of thumb in a vacuum. 194 00:11:08.070 --> 00:11:09.160 Well, that makes a lot of sense, 195 00:11:09.160 --> 00:11:13.640 especially if you're looking at alternatives as a third leg to the stool, right. 196 00:11:13.660 --> 00:11:14.600 Stocks and bonds. 197 00:11:14.740 --> 00:11:18.160 And if the third category is going to be alternative asset classes or 198 00:11:18.160 --> 00:11:20.760 alternative strategies, it should come out prorata. 199 00:11:21.150 --> 00:11:24.160 It's not that the ALS are taking the place of equities or fixed income, 200 00:11:24.190 --> 00:11:26.880 it's something completely, completely different in the portfolio. 201 00:11:27.300 --> 00:11:28.133 Yep. 202 00:11:28.230 --> 00:11:32.480 Fantastic. So, um, Phil, I wanna thank you so much for your time. This is, uh, 203 00:11:32.500 --> 00:11:36.440 uh, super enlightening and just to kind of recap what we discussed, uh, 204 00:11:36.440 --> 00:11:38.000 for our listeners, um, 205 00:11:38.000 --> 00:11:42.040 alternative investments are a great way to diversify a portfolio beyond stocks, 206 00:11:42.280 --> 00:11:43.113 bonds, and cash. 207 00:11:43.690 --> 00:11:48.400 There are ways to get exposures to liquid alternative strategies through 208 00:11:48.670 --> 00:11:50.920 ETFs and mutual funds. With that should, 209 00:11:51.020 --> 00:11:54.920 you should expect a level of transparency to make sure you are getting those 210 00:11:54.920 --> 00:11:59.720 diversification benefits and, uh, certainly, uh, liquidity being a, 211 00:11:59.980 --> 00:12:04.240 uh, a factor there as well. And you know, whether or not alternatives are, 212 00:12:04.240 --> 00:12:07.560 are suitable for you, as we always say and unfiltered finance. You know, 213 00:12:07.560 --> 00:12:10.320 the best advice we can give is to always work with a financial advisor or 214 00:12:10.320 --> 00:12:14.760 financial professional that can take a look at your own personal situation, 215 00:12:15.060 --> 00:12:18.880 assess that situation, and, uh, make sure that they recommend, uh, 216 00:12:18.880 --> 00:12:21.520 an asset allocation, uh, that's suitable for you. 217 00:12:21.810 --> 00:12:24.520 Thank you listeners for joining us today. Uh, Phil, once again, 218 00:12:24.870 --> 00:12:27.760 it's always fun having you on the show. We'll certainly have you back. Great. 219 00:12:27.760 --> 00:12:28.593 Thanks for having me. 220 00:12:29.020 --> 00:12:31.160 For those of you who are looking for additional information, 221 00:12:31.160 --> 00:12:35.920 you can always visit our website@www.symmetrypartners.com. Feel free to, 222 00:12:36.340 --> 00:12:38.080 uh, listen to this podcast, uh, 223 00:12:38.090 --> 00:12:42.200 again or access any of our previous podcasts to the, uh, 224 00:12:42.330 --> 00:12:44.120 venue in which you get your podcasts. 225 00:12:44.460 --> 00:12:46.440 So thanks for listening and we'll catch you next time. 226 00:12:46.720 --> 00:12:48.360 Symmetry Partners, llc, 227 00:12:49.080 --> 00:12:52.600 an investment advisor firm registered with the Securities and Exchange 228 00:12:52.600 --> 00:12:53.420 Commission. 229 00:12:53.420 --> 00:12:58.120 The firm only transacts business in states where it is properly registered or 230 00:12:58.560 --> 00:13:01.600 excluded or exempted from registration requirements. 231 00:13:01.960 --> 00:13:06.480 Registration of an investment advisor does not imply any specific level of skill 232 00:13:06.480 --> 00:13:07.313 or training, 233 00:13:07.660 --> 00:13:11.480 and does not constitute an endorsement of the firm by the commission. 234 00:13:11.780 --> 00:13:14.920 No one should assume that future performance of any specific investment, 235 00:13:15.130 --> 00:13:17.400 investment strategy, product, 236 00:13:17.900 --> 00:13:22.120 or non-investment related content made reference to directly or indirectly in 237 00:13:22.120 --> 00:13:26.710 this material will be profitable. As with any investment strategy, 238 00:13:26.960 --> 00:13:31.750 there is the possibility of profitability as well as loss due to various 239 00:13:31.750 --> 00:13:36.230 factors including changing market conditions and or applicable laws. 240 00:13:36.930 --> 00:13:41.230 The content may not be reflective of current opinions or positions. 241 00:13:41.490 --> 00:13:45.870 Please note the material is provided for educational and background use only. 242 00:13:45.950 --> 00:13:46.690 Moreover, 243 00:13:46.690 --> 00:13:50.590 you should not assume that any discussion or information contained in this 244 00:13:50.830 --> 00:13:54.830 material serves as the receipt of or as a substitute for 245 00:13:55.190 --> 00:13:57.190 personalized investment advice.

Alternative Investments | Part One: There is Real Value in Non-Traditional Assets and Special Commodities

Play Episode Listen Later May 25, 2023 16:16

Today, we talk about an area of the market that many people have heard of, but haven't chosen to invest in as of yet. Specifically, we're talking about “Alternative Investments” - investment strategies that are different from and diversifying to, traditional asset classes. In this first half of this two-part episode, our own Tom Romano is joined by Symmetry's Phil McDonald, CFA, CAIA, Managing Director of Research Investments & Portfolio Manager, to further define what “Alternative Investments” are, and why you may want to consider their potential benefits. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. Transcript 0 00:00:06.730 --> 00:00:10.400 Hello and welcome to Unfiltered Finance. This is your host, Tom Romano. 1 00:00:10.400 --> 00:00:12.160 Thank you for joining us. Uh, 2 00:00:12.160 --> 00:00:15.000 we have a special episode today where we want to talk about, uh, 3 00:00:15.000 --> 00:00:19.400 an area of the market that, uh, a lot of investors have probably heard of, uh, 4 00:00:19.620 --> 00:00:22.640 and probably most investors don't have a lot of exposure to. 5 00:00:23.180 --> 00:00:25.200 And that is alternative investments. 6 00:00:25.780 --> 00:00:29.200 And I have the perfect guest for us here today. Uh, Phil McDonald, 7 00:00:29.300 --> 00:00:33.040 who is a portfolio manager and the managing director of investments at Symmetry 8 00:00:33.040 --> 00:00:35.360 Partners, and is the resident expert on, 9 00:00:35.580 --> 00:00:39.360 on alternative investing here at Symmetry. So Phil, thanks for joining us today. 10 00:00:39.700 --> 00:00:41.280 Thanks for having me. I'm happy to be here. 11 00:00:41.900 --> 00:00:45.080 So I kinda wanna start very high level, Phil, um, 12 00:00:45.080 --> 00:00:49.200 because I think alternative investments is a, is a very, very broad topic. 13 00:00:49.400 --> 00:00:51.760 I mean, it can cover things, uh, 14 00:00:51.760 --> 00:00:55.760 such as precious metals to hedge fund strategies, um, 15 00:00:55.780 --> 00:00:59.760 all the way down to things like NFTs, right? Or, or even, you know, 16 00:00:59.760 --> 00:01:04.240 card collecting to an extent, right? So if you could just very high level give, 17 00:01:04.240 --> 00:01:08.520 give us a very broad definition, uh, on your view on alternative investing, 18 00:01:08.520 --> 00:01:09.020 please. 19 00:01:09.020 --> 00:01:09.720 And thank you that, 20 00:01:09.720 --> 00:01:14.680 that is a highly relevant question because alternatives is one of those labels 21 00:01:14.680 --> 00:01:17.760 and investing that doesn't have, uh, 22 00:01:17.880 --> 00:01:21.080 a perfectly agreed upon definition. I think, you know, 23 00:01:21.080 --> 00:01:24.640 certain people hear it and they think different things. Um, 24 00:01:24.800 --> 00:01:29.200 I think a useful definition to keep in mind is really, uh, 25 00:01:29.200 --> 00:01:33.080 the starting point is anything that is an investment strategy that is different 26 00:01:33.390 --> 00:01:37.800 from or diversifying to traditional asset classes that is 27 00:01:38.100 --> 00:01:41.080 equity and fixed income, right? Um, 28 00:01:41.180 --> 00:01:45.440 but I think you can't really stop there because, you know, 29 00:01:45.460 --> 00:01:48.840 you called attention to, to certain ideas that, you know, 30 00:01:48.840 --> 00:01:52.040 people might think of if, you know, you mentioned alternative investing, 31 00:01:52.320 --> 00:01:54.960 you know, baseball cards or, you know, 32 00:01:54.960 --> 00:01:58.520 a lot of interesting different artwork choices. Yeah. We've talked about, 33 00:01:58.520 --> 00:01:58.840 talked about 34 00:01:58.840 --> 00:01:59.270 That before. 35 00:01:59.270 --> 00:02:04.080 Cars, uh, timber farmland, you know, these are all, some, 36 00:02:04.320 --> 00:02:06.640 a lot of people think real estate, right? Which I think we could, 37 00:02:06.640 --> 00:02:07.600 we could debate that one, 38 00:02:07.700 --> 00:02:12.520 but I think not only should the investment strategy be different, but there, 39 00:02:12.530 --> 00:02:17.240 there should be kind of an economic rationale for why you might 40 00:02:17.510 --> 00:02:21.480 earn a return on that different strategy. And, and more specifically, 41 00:02:22.670 --> 00:02:27.560 where's the premium coming from? Right? So I think very quickly for me, 42 00:02:27.560 --> 00:02:31.600 that collapses down more to specific liquid, 43 00:02:32.380 --> 00:02:34.560 uh, investment in trading strategies. 44 00:02:34.950 --> 00:02:38.800 Sometimes based on themes we're al already familiar with in, 45 00:02:38.820 --> 00:02:40.640 in asset classes we're already familiar with. 46 00:02:40.640 --> 00:02:45.480 You don't necessarily have to go really far a field to find an 47 00:02:45.760 --> 00:02:49.480 addition to a portfolio that will, will make a difference in terms of, you know, 48 00:02:49.480 --> 00:02:51.920 adding an alternative, uh, investment exposure. 49 00:02:52.630 --> 00:02:55.560 Sure. Thank you for that. And, um, you know, 50 00:02:55.560 --> 00:02:58.680 I think it is that broad of a definition, right? I mean, uh, 51 00:02:58.990 --> 00:03:02.800 just to sort of clarify for, for our listeners, um, 52 00:03:02.860 --> 00:03:06.000 the word alternative means alternative, you said traditional asset classes, 53 00:03:06.460 --> 00:03:08.040 stocks, bonds. 54 00:03:08.610 --> 00:03:13.080 There is a correlation benefit to owning both stocks and bonds in a portfolio 55 00:03:13.270 --> 00:03:16.840 Most years. Most years. Yeah. We'll get to that. We will get to that. Um, 56 00:03:17.390 --> 00:03:20.640 however, um, you know, alternatives, to me it is a, 57 00:03:20.640 --> 00:03:25.280 it's a correlation story in, in all of those investments, if you will, 58 00:03:25.280 --> 00:03:30.200 whether it's cars, stamps, baseball cards, commodities, 59 00:03:30.670 --> 00:03:35.480 they are going to have or should have some sort of diversification benefit. 60 00:03:35.540 --> 00:03:37.000 And that's the purpose of it, right? 61 00:03:37.750 --> 00:03:39.200 Totally. You, you nailed it. 62 00:03:39.260 --> 00:03:44.120 The diversification benefit of an alternative strategy performing alternatively, 63 00:03:44.130 --> 00:03:46.480 right? So if you wanna get a little bit geeky, you know, 64 00:03:46.480 --> 00:03:50.160 you can think about something whose return stream looks different. So, you know, 65 00:03:50.220 --> 00:03:54.920 low correlation and expected return from that, you know, economic logic, 66 00:03:55.030 --> 00:03:58.760 that underlying fundamental theme as to if I do this trading strategy, 67 00:03:58.880 --> 00:04:03.760 I should expect a return, hopefully lower volatility than, than say, 68 00:04:03.920 --> 00:04:08.840 a equity market. So right there, you, you can talk about high sharp ratios or, 69 00:04:08.860 --> 00:04:12.560 you know, high excess returns relative to the volatility you're talking about. 70 00:04:12.780 --> 00:04:17.760 And, and absolutely diversification is the benefit. Very often, I, I, you know, 71 00:04:17.900 --> 00:04:21.520 use the, um, analogy of, you know, a third bucket of diversification. 72 00:04:21.540 --> 00:04:23.840 All you thought really all you had was two, well, 73 00:04:23.840 --> 00:04:27.760 there's this third bucket you might want to consider for some clients. And, 74 00:04:27.820 --> 00:04:31.240 and one, one thing I want to clarify here on, on this topic while we're here, 75 00:04:31.710 --> 00:04:35.040 most of these strategies are not a hedge, 76 00:04:35.500 --> 00:04:37.360 diversification is not a hedge. 77 00:04:37.820 --> 00:04:41.000 So if you're diversified with regard to, you know, 78 00:04:41.020 --> 00:04:45.600 equity markets and volatility, it doesn't mean when equities go down 10%, 79 00:04:45.780 --> 00:04:49.680 you go up 10%. It's not that directly, you know, 80 00:04:49.950 --> 00:04:53.360 inverse of a relationship. It's unrelated, you know, 81 00:04:53.360 --> 00:04:58.240 it's not sensitive to what the equity or fixed income market hopefully is doing. 82 00:04:58.420 --> 00:05:00.080 That's really what diversification is. 83 00:05:00.380 --> 00:05:03.360 So it's not the taking the, the counterpoint, if you will, right? 84 00:05:03.390 --> 00:05:08.240 Like something zigs this must zag, so to speak. Right? And so the idea is, it, 85 00:05:08.350 --> 00:05:13.240 it's not going to behave from a return standpoint like any other, 86 00:05:13.260 --> 00:05:17.080 it shouldn't behave like any other asset classes you currently have in your 87 00:05:17.080 --> 00:05:20.680 portfolio. And I really like the way you put that sort of a, a third bucket, 88 00:05:20.680 --> 00:05:24.640 right? I I maybe even a fourth, right? Because I think of cash. Yeah, exactly. 89 00:05:24.700 --> 00:05:29.160 So, so most investors have cash, bonds and stocks, 90 00:05:29.270 --> 00:05:31.120 most of their 401ks. And so what you're saying, 91 00:05:31.120 --> 00:05:35.200 there's this whole other realm of alternatives that can have 92 00:05:36.140 --> 00:05:40.880 diversification benefits because of the fact that they don't behave like stocks, 93 00:05:41.170 --> 00:05:43.120 bonds, and cash. Correct. 94 00:05:43.980 --> 00:05:48.880 So let's talk a little bit because I think alternatives sometimes get a bad 95 00:05:48.980 --> 00:05:52.120 rap. Um, I think a lot of it has to do with the, 96 00:05:52.260 --> 00:05:54.720 so maybe the broad definition has something to do with it, 97 00:05:54.780 --> 00:05:56.920 but let's just kind of pick it apart with some of the, 98 00:05:57.010 --> 00:06:00.920 the arguments I've heard from, uh, investors and financial advisors alike. 99 00:06:00.920 --> 00:06:03.400 And the first one that comes to mind is cost, right? You know, 100 00:06:03.400 --> 00:06:04.040 you think hedge funds, 101 00:06:04.040 --> 00:06:08.160 you think two 20 or three and 30 where you're the managers earning, you know, 102 00:06:08.180 --> 00:06:10.040 2%, 3% plus a, 103 00:06:10.160 --> 00:06:13.360 a large portion of the profits talk to us a little bit about cost with 104 00:06:13.360 --> 00:06:14.090 alternatives, 105 00:06:14.090 --> 00:06:17.920 Right? And that I think is a fair critique of, 106 00:06:18.320 --> 00:06:20.960 I dunno if I wanna call it a traditional model of alternative investing, 107 00:06:20.960 --> 00:06:24.320 maybe older model where some of this, these strategies started mm-hmm. 108 00:06:24.490 --> 00:06:26.840 Which really only offered in limited partnerships, 109 00:06:27.290 --> 00:06:29.760 which tend to have high minimums, you know, 110 00:06:29.760 --> 00:06:33.880 so only high net worth folks can qualify for them. They're illiquid. 111 00:06:34.180 --> 00:06:38.000 So capital could be tied up for something even up to 10 years opaque, 112 00:06:38.060 --> 00:06:41.880 you're not really sure what the manager is doing and, and expensive, you know, 113 00:06:41.880 --> 00:06:42.640 even, you know, 114 00:06:42.640 --> 00:06:46.240 sometimes you have like fund to funds and feeder funds and you have layers of 115 00:06:46.240 --> 00:06:49.440 fees, and then obviously those, those performance fees come into play as well. 116 00:06:50.180 --> 00:06:54.560 Um, so the good news is that that's not the only way to access alternative 117 00:06:54.560 --> 00:06:56.360 strategies. Now, you, 118 00:06:56.580 --> 00:07:00.720 the investor is able to invest in mutual funds and even ETFs that offer 119 00:07:00.950 --> 00:07:04.520 alternative strategies for the most part, liquid, transparent, you know, 120 00:07:04.520 --> 00:07:07.920 you get all the benefits of, you know, the regulatory requirements of, 121 00:07:07.940 --> 00:07:09.880 of being a fund in these structures. 122 00:07:10.580 --> 00:07:14.920 Not all strategies live well in that liquid structure. 123 00:07:15.380 --> 00:07:19.240 So, you know, you don't have quite literally that list of, you know, 124 00:07:19.240 --> 00:07:21.760 that funny list of all the things we could think of that someone might think of 125 00:07:21.760 --> 00:07:25.240 as, as a good investment. So you, you are more constrained, 126 00:07:25.300 --> 00:07:28.760 but still there's quite a bit to, to choose from. And then, you know, 127 00:07:28.760 --> 00:07:29.593 to your point, 128 00:07:29.710 --> 00:07:33.040 most of those strategies are just gonna have a very straightforward expense 129 00:07:33.170 --> 00:07:37.960 ratio on the fund. It'll be very clear what the investor has to pay on average. 130 00:07:38.340 --> 00:07:43.040 You typically see higher fees than, you know, a traditional say, 131 00:07:43.210 --> 00:07:47.320 index fund for equity or, or, or fixed income. But you, 132 00:07:47.320 --> 00:07:51.560 you're getting something different in, in a well-managed alternative strategy, 133 00:07:51.610 --> 00:07:54.280 Right? And you hit on a couple of of points there, right? 134 00:07:54.310 --> 00:07:57.040 Cost is something that always comes up. And uh, 135 00:07:57.200 --> 00:08:01.240 I understand that even in some of these ETF or mutual fund type vehicles, 136 00:08:01.270 --> 00:08:03.280 that there, there could be a higher layer of cost, 137 00:08:03.280 --> 00:08:08.160 but there are ways to get exposures to these asset classes without paying 138 00:08:08.580 --> 00:08:13.480 two and 20. Mm-hmm. Right. Um, you also mentioned liquidity, right? 139 00:08:13.600 --> 00:08:15.080 I think that gets solved for, 140 00:08:15.580 --> 00:08:18.680 if you're not using a limited partnership sort of vehicle. 141 00:08:19.300 --> 00:08:21.880 If you're using an etf, they're very, very liquid. 142 00:08:22.140 --> 00:08:24.520 So you can get your money whenever you may need it. 143 00:08:24.540 --> 00:08:27.800 But you also hit on something that I think is, I think, 144 00:08:27.800 --> 00:08:30.600 important to investors and it's transparency, right? 145 00:08:30.700 --> 00:08:32.880 The opacity of a hedge fund, traditional, 146 00:08:33.100 --> 00:08:37.360 if I can use the word traditional hedge fund tends to be a little bit, uh, 147 00:08:37.370 --> 00:08:41.280 black boxy, if you will, right? Right. And maybe investors are thinking of, 148 00:08:41.620 --> 00:08:44.160 you know, things like Bernie Madoff or things like that, right? 149 00:08:44.160 --> 00:08:45.800 Where you don't know what's going on under the hood, 150 00:08:45.940 --> 00:08:49.440 but an ETF or a mutual fund, 151 00:08:50.260 --> 00:08:54.760 an ETF specifically, you're gonna get a a lot of transparency in that. Correct? 152 00:08:55.030 --> 00:08:55.320 Yeah, 153 00:08:55.320 --> 00:08:55.900 Absolutely. 154 00:08:55.900 --> 00:08:57.080 So you know exactly what you're holding. 155 00:08:57.250 --> 00:09:00.720 Absolutely. And, and, uh, you've touched upon a point, 156 00:09:00.730 --> 00:09:03.560 which I think is very relevant, 157 00:09:03.660 --> 00:09:08.480 and thankfully there's been an evolution in the industry to kind of bring 158 00:09:08.480 --> 00:09:10.960 attention to some of that. So the, 159 00:09:11.100 --> 00:09:14.280 the idea of a global macro go anywhere, 160 00:09:14.410 --> 00:09:19.240 hedge fund a star manager who, you know, returned a thousand percent last year, 161 00:09:19.780 --> 00:09:23.640 you know, raising funds, just like in telling investors, I'm really smart. 162 00:09:23.820 --> 00:09:26.760 I'm smarter than all the rest. Invest with me. 163 00:09:26.790 --> 00:09:29.640 I'll find whatever the opportunity is globally, you know, 164 00:09:29.640 --> 00:09:32.240 regardless of country or region or asset class. Like, 165 00:09:32.360 --> 00:09:36.040 I will go find that opportunity and I will achieve a higher return. That, 166 00:09:36.740 --> 00:09:41.440 that's certainly something to probably be very careful of, right? He, 167 00:09:41.440 --> 00:09:44.920 he might wanna shy away from that. So over the last, I don't know, 168 00:09:44.920 --> 00:09:47.040 I'll say 25 years or so, there, 169 00:09:47.040 --> 00:09:49.840 there's been light kind of shown upon this idea that, you know, 170 00:09:49.840 --> 00:09:52.960 hedge funds don't hedge, you know, some hedge funds have a lot of beta, 171 00:09:52.990 --> 00:09:53.880 some hedge funds are, 172 00:09:54.020 --> 00:09:57.240 are implementing strategies you can get with liquid strategies. You know, 173 00:09:57.240 --> 00:10:00.920 this idea of hedge fund replication was, was an interesting arm of, uh, 174 00:10:00.920 --> 00:10:03.120 quantitative research. So I, I think for, 175 00:10:03.180 --> 00:10:07.000 for those who are interested and have the time as an alternative investor, you, 176 00:10:07.020 --> 00:10:10.880 you should be able to get from your manager a very specific explanation of 177 00:10:11.070 --> 00:10:13.800 exactly what's happening in the strategy, 178 00:10:14.980 --> 00:10:16.480 why it's an alternative strategy, 179 00:10:16.740 --> 00:10:19.440 why the fee being charged on that strategy makes sense, 180 00:10:19.660 --> 00:10:23.320 how it's diversifying to traditional asset classes. And really, I think at a, 181 00:10:23.320 --> 00:10:24.720 on a very basic level, 182 00:10:25.110 --> 00:10:30.040 confirm you're not paying alternative investment fees for 183 00:10:30.270 --> 00:10:32.120 just call it equity beta, right? 184 00:10:32.120 --> 00:10:36.080 Because we know equity beta is available in really high quality ETFs from 185 00:10:36.120 --> 00:10:38.840 Vanguard for probably three basis points. Yeah. 186 00:10:38.840 --> 00:10:42.880 I think that's a very important point, right? And, and we're firm believers on, 187 00:10:42.940 --> 00:10:47.440 on, on transparency. And if you're using alternatives correctly, 188 00:10:47.540 --> 00:10:49.000 if I'm understanding what you're saying, 189 00:10:49.260 --> 00:10:52.240 and it is a diversification play to ensure that you're getting that 190 00:10:52.240 --> 00:10:55.960 diversification, you need that level of transparency. And a lot of times, and, 191 00:10:55.960 --> 00:10:58.400 and we've read about this and talked about this in the past, 192 00:10:58.470 --> 00:11:02.200 sometimes these more opaque type strategies, you know, 193 00:11:02.200 --> 00:11:03.840 if equities are doing really, really well, 194 00:11:04.070 --> 00:11:07.920 they might be very correlated to equities at that very given point in time. 195 00:11:07.920 --> 00:11:12.400 And then the whole story of diversification kind of goes out the window, 196 00:11:12.400 --> 00:11:13.233 doesn't it? 197 00:11:13.240 --> 00:11:14.073 A hundred percent. 198 00:11:14.260 --> 00:11:19.200 And I think financial media hasn't helped in that education, right? 199 00:11:19.500 --> 00:11:23.920 So there's been stretches of time when equity markets were doing very well, 200 00:11:24.100 --> 00:11:27.800 and hedge funds haven't been, and, and you know, the storyline there is, 201 00:11:27.800 --> 00:11:31.280 you know, hedge funds failed. And well, if hedge fund, 202 00:11:31.500 --> 00:11:35.600 if a real alternative strategy has zero beta to the equity market and the equity 203 00:11:35.600 --> 00:11:36.920 equity market's doing well, 204 00:11:37.720 --> 00:11:42.280 I wouldn't necessarily expect to see those hedge funds up just because, 205 00:11:42.450 --> 00:11:43.640 Right? If, if the, 206 00:11:43.780 --> 00:11:47.480 if the alternative investment that you're using for diversification is zigging, 207 00:11:47.480 --> 00:11:49.240 while your equities are zigging, you 208 00:11:49.240 --> 00:11:50.280 Should ask questions. You should ask 209 00:11:50.440 --> 00:11:53.200 Questions. Absolutely. Absolutely. Well, let, 210 00:11:53.200 --> 00:11:56.000 let's talk a little bit about the performance, uh, of, 211 00:11:56.900 --> 00:11:59.720 of alternative investing in relation to portfolio. 212 00:11:59.860 --> 00:12:03.120 And you alluded to this in the beginning when, uh, you mentioned that, you know, 213 00:12:03.120 --> 00:12:07.880 sometimes stocks and bonds do behave alike. Mm-hmm. And we saw that in 2022, 214 00:12:07.880 --> 00:12:11.840 right? Yeah. Both had, uh, extremely volatile tough year, 215 00:12:12.350 --> 00:12:15.200 both ended up in, in the red. Um, 216 00:12:16.380 --> 00:12:18.360 how did alternatives do, or what, 217 00:12:18.360 --> 00:12:21.360 how did alternative asset classes perform during that timeframe? 218 00:12:21.860 --> 00:12:25.680 Uh, certain of them did reasonably well. So, uh, I'll, 219 00:12:25.680 --> 00:12:28.480 I'll maybe run through a few examples of, uh, 220 00:12:28.480 --> 00:12:31.900 strategies that are alternative. Uh, 221 00:12:31.900 --> 00:12:35.060 our diversified alternative investment approach would include. 222 00:12:35.280 --> 00:12:39.420 One of those is something called, uh, manage futures or trend following, or, 223 00:12:39.880 --> 00:12:43.500 you know, if you want to think about, you know, quantitative factor investing, 224 00:12:43.500 --> 00:12:48.020 which you know, is what we think about a lot, you can, you can consider that, 225 00:12:48.640 --> 00:12:51.660 um, longitudinal momentum or momentum over time. 226 00:12:51.920 --> 00:12:56.900 And this is really just a strategy that takes advantage of investing in futures 227 00:12:56.900 --> 00:13:00.660 and forwards. So derivatives that'll cover, you know, commodities, 228 00:13:00.760 --> 00:13:05.460 equity markets, fixed income markets. Uh, and in the simplest sense, 229 00:13:06.200 --> 00:13:10.100 if a trend in an asset class is up, 230 00:13:10.590 --> 00:13:14.900 especially over, you know, short, medium, and long-term time periods, 231 00:13:15.080 --> 00:13:18.580 the managed future strategy would essentially be long that exposure. 232 00:13:19.440 --> 00:13:22.380 And if a trend is down over, you know, 233 00:13:22.670 --> 00:13:27.500 short and long horizon managed future strategy would be short, uh, 234 00:13:27.500 --> 00:13:30.780 that asset class or commodity. So in 2022, 235 00:13:31.530 --> 00:13:35.100 when everything felt like it was going down and continuing down, 236 00:13:35.720 --> 00:13:39.820 the managed future strategy was able to reposition and be short, 237 00:13:40.290 --> 00:13:45.220 many of those strategies that were showing persistent negative price signals. 238 00:13:45.840 --> 00:13:49.580 So in 2022 a year when both equity and fixed income markets globally, 239 00:13:50.090 --> 00:13:51.900 generally speaking on a diversified basis, 240 00:13:52.010 --> 00:13:54.420 were down and very positively correlated, 241 00:13:54.730 --> 00:13:59.460 something like a managed future strategy was up, uh, strongly and, 242 00:13:59.460 --> 00:14:01.260 and very diversifying. That's 243 00:14:01.260 --> 00:14:01.740 Really interesting. 244 00:14:01.740 --> 00:14:06.740 And so would you'd have the same expectation if both stocks and bonds were 245 00:14:06.740 --> 00:14:09.580 up, that the mayor's future strategy might be down, or does it depend? 246 00:14:10.160 --> 00:14:10.993 It depends. 247 00:14:11.080 --> 00:14:14.900 So it depends on the strength of those signals and the persistence of those 248 00:14:14.900 --> 00:14:19.100 trends. So in, in certain stable, neutral, slow, 249 00:14:20.090 --> 00:14:24.900 generally up markets, those signals may be too choppy to, to make use of. 250 00:14:25.160 --> 00:14:28.940 And maybe if there's conflicting signals, say, you know, 251 00:14:29.560 --> 00:14:32.900 up in the short term, down strongly in the medium term, 252 00:14:33.000 --> 00:14:35.460 up slightly in the long term, you know, 253 00:14:35.460 --> 00:14:38.020 you can't always make sense of those quantitative signals and, 254 00:14:38.020 --> 00:14:42.260 and you might have no exposure in that type of underlying market or commodity or 255 00:14:42.260 --> 00:14:43.000 asset class. 256 00:14:43.000 --> 00:14:46.540 So that'll conclude part one of our, uh, conversation alternative investments. 257 00:14:46.610 --> 00:14:49.300 Phil, thanks for joining us. And for our listeners, uh, 258 00:14:49.300 --> 00:14:50.900 if you're looking for additional information, 259 00:14:51.160 --> 00:14:54.920 please feel free to visit our website, www.symmetrypartners.com, 260 00:14:55.260 --> 00:14:58.400 and to access more of the Unfiltered Finance podcasts. 261 00:14:58.580 --> 00:15:01.800 Please feel free to find us wherever you're getting your podcast today. 262 00:15:02.020 --> 00:15:03.480 Be sure to stay tuned for part two. 263 00:15:03.840 --> 00:15:08.320 Symmetry Partners LLC is an investment advisor firm registered with the 264 00:15:08.320 --> 00:15:10.080 Securities and Exchange Commission. 265 00:15:10.420 --> 00:15:15.120 The firm only transacts business in states where it is properly registered or 266 00:15:15.560 --> 00:15:18.600 excluded or exempted from registration requirements. 267 00:15:19.040 --> 00:15:23.680 Registration of an investment advisor does not imply any specific level of skill 268 00:15:23.700 --> 00:15:24.533 or training, 269 00:15:24.660 --> 00:15:28.520 and does not constitute an endorsement of the firm by the commission. 270 00:15:28.860 --> 00:15:32.000 No one should assume that future performance of any specific investment, 271 00:15:32.210 --> 00:15:34.480 investment strategy, product, 272 00:15:34.980 --> 00:15:39.240 or non-investment related content made reference to directly or indirectly in 273 00:15:39.240 --> 00:15:43.690 this material will be profitable. As with any investment strategy, 274 00:15:43.940 --> 00:15:48.890 there is the possibility of profitability as well as loss due to various 275 00:15:48.890 --> 00:15:53.370 factors including changing market conditions and or applicable laws. 276 00:15:54.070 --> 00:15:58.450 The content may not be reflective of current opinions or positions. 277 00:15:58.790 --> 00:16:02.890 Please note the material is provided for educational and background use only. 278 00:16:02.970 --> 00:16:03.670 Moreover, 279 00:16:03.670 --> 00:16:07.810 you should not assume that any discussion or information contained in this 280 00:16:08.010 --> 00:16:12.050 material serves as the receipt of or as a substitute for 281 00:16:12.370 --> 00:16:14.490 personalized investment advice.

Reducing Your Tax Bill - Part Two

Play Episode Listen Later Mar 9, 2023 18:10

In our last episode, we discussed the importance of a portfolio's asset allocation, and, how that relates to “Reducing Your Tax Bill”. In part two of this episode, we are joined once again by Symmetry's Managing Director of Research and Investments, Philip McDonald, CFA, CAAIA & Glenn Shirley, CAIA, Head of Investor Relations for Quantinno Capital Management, to discuss the methods by which you can “re-charge that tax benefit”. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. 00:00:01.800 --> 00:00:07.600 Hello listeners, 1 00:00:07.600 --> 00:00:10.900 welcome back to part two of our conversation on 2 00:00:10.900 --> 00:00:13.500 investing in taxes. Once again, I'm joined by Glenn 3 00:00:13.500 --> 00:00:16.500 Shirley from quantino and Phil McDonald from symmetry. 4 00:00:16.500 --> 00:00:19.100 Thanks gentlemen for joining us again, whether or not the market goes up 5 00:00:19.100 --> 00:00:22.800 or down when you have the long short overlay you have 6 00:00:22.800 --> 00:00:26.700 opportunities to to find losers losses. 7 00:00:26.700 --> 00:00:29.700 If you will to reach hard that tax benefit, 8 00:00:29.700 --> 00:00:32.400 it's some what counterintuitive right we're looking 9 00:00:32.400 --> 00:00:35.300 for Securities that have gone down in 10 00:00:35.300 --> 00:00:38.100 value, but I think the truth of the matter is is that when you 11 00:00:38.100 --> 00:00:41.600 own an ETF that's tracking an index or mutual 12 00:00:41.600 --> 00:00:44.300 fund that's tracking index. The reality is Phil 13 00:00:44.300 --> 00:00:47.600 you do own those losers. You just might not see them right? They're always 14 00:00:47.600 --> 00:00:50.200 that's right. Yeah looking at and that's 15 00:00:50.200 --> 00:00:53.300 a great Point looking at say in S&P 500 or 16 00:00:53.300 --> 00:00:57.300 Russell 1000 ETF. You you see one number, 17 00:00:56.300 --> 00:00:59.300 you know one one price 18 00:00:59.300 --> 00:01:01.500 one return but behind 19 00:01:02.300 --> 00:01:06.100 You're likely going to have dozens and dozens of positions 20 00:01:05.100 --> 00:01:08.200 that throughout the year and at year end 21 00:01:08.200 --> 00:01:11.900 are in or in a lost position. So in 22 00:01:11.900 --> 00:01:14.400 direct indexing, it just kind of breaks down that wrapper and 23 00:01:14.400 --> 00:01:17.700 you hold, you know hundreds of Securities directly. So 24 00:01:17.700 --> 00:01:20.800 you kind of see those a little bit more clearly sure and 25 00:01:20.800 --> 00:01:24.400 we've seen that in recent years right with some of these tech stocks 26 00:01:24.400 --> 00:01:27.400 the Fang stocks if you will Facebook Apple Amazon Netflix Google 27 00:01:27.700 --> 00:01:30.200 Etc. They were driving the returns of the S&P and there 28 00:01:30.200 --> 00:01:33.400 was a vast majority of those securities within the S&P that 29 00:01:33.400 --> 00:01:36.300 were in the red and by unwrapping it you can 30 00:01:36.300 --> 00:01:39.600 take advantage of those you still run into the issue of 31 00:01:39.600 --> 00:01:42.700 the portfolio seizing and what 32 00:01:42.700 --> 00:01:45.400 I mean by that is what we've been talking about having that portfolio 33 00:01:45.400 --> 00:01:48.000 get to a point where you don't have any room to make 34 00:01:48.300 --> 00:01:51.600 any trades without incurring some sort of tax consequence, but I 35 00:01:51.600 --> 00:01:54.900 think that's where the 1330 comes in right Glenn you're 36 00:01:54.900 --> 00:01:57.300 able to apply that strategy on 37 00:01:57.300 --> 00:02:00.700 top of an existing portfolio generate losses in 38 00:02:00.700 --> 00:02:02.200 any Market environment. And so 39 00:02:02.200 --> 00:02:05.100 So I think that that's a really interesting thing Glenn. Can you talk a little bit? 40 00:02:05.100 --> 00:02:08.200 I didn't mean to interrupt you, but could you talk a little bit about what is 41 00:02:08.200 --> 00:02:11.400 what happens with the risk exposure by putting that overlay on 42 00:02:11.400 --> 00:02:14.500 right investor with that 100 dollars 30 long 43 00:02:14.500 --> 00:02:17.100 30 short what what happens to the 44 00:02:17.100 --> 00:02:20.600 risk characters of that particular account? Sure. Yeah great 45 00:02:20.600 --> 00:02:23.300 question Tom. So if you look at if you just 46 00:02:23.300 --> 00:02:26.900 put on a 30% long 30% short 47 00:02:26.900 --> 00:02:29.300 portfolio. And you said what is the risk of 48 00:02:29.300 --> 00:02:32.500 that portfolio in isolation by itself? The answer 49 00:02:32.500 --> 00:02:36.000 to that is about one percent and that 50 00:02:35.100 --> 00:02:38.300 could be there be you know, standard deviation how much it's 51 00:02:38.300 --> 00:02:42.100 going to move around or it could be if you're if you're looking at that benchmarked 52 00:02:41.100 --> 00:02:44.200 to a you know, an index like 53 00:02:44.200 --> 00:02:47.400 the S&P 500 that would be one percent tracking here. So pretty 54 00:02:47.400 --> 00:02:50.500 modest, you know, a lot of active Equity strategies have tracking 55 00:02:50.500 --> 00:02:53.300 air easily of two percent or more. So we're 56 00:02:53.300 --> 00:02:56.300 not adding a lot of of risk just via that long 57 00:02:56.300 --> 00:02:59.500 short extension, but in reality as I mentioned you have 58 00:02:59.500 --> 00:03:01.600 these kind of Legacy accounts that 59 00:03:02.200 --> 00:03:05.700 Some elevated levels of risk that long short extension is 60 00:03:05.700 --> 00:03:08.200 a tool to reduce that risk. So even though 61 00:03:08.200 --> 00:03:11.400 you have a 1% risk in 62 00:03:11.400 --> 00:03:14.300 that long short extension in isolation. If you use that 63 00:03:14.300 --> 00:03:17.400 long short extension efficiently to reduce 64 00:03:17.400 --> 00:03:20.600 the total risk of the portfolio, then oftentimes we 65 00:03:20.600 --> 00:03:23.900 can also we can actually reduce kind of the total tracking 66 00:03:23.900 --> 00:03:26.400 error or risk versus The Benchmark of a 67 00:03:26.400 --> 00:03:29.200 tax less harvesting strategy often we can at least 68 00:03:29.200 --> 00:03:32.400 keep it the same. So when you look at a quantino kind 69 00:03:32.400 --> 00:03:35.900 of 130 30 tax loss harvesting account tracking errors 70 00:03:35.900 --> 00:03:38.400 typically one and a half percent on average 71 00:03:38.400 --> 00:03:41.400 and that's very very similar to what of 72 00:03:41.400 --> 00:03:44.300 what a clients are probably experiencing in their long only text less 73 00:03:44.300 --> 00:03:47.100 harvesting accounts as well. So just to reiterate what you're 74 00:03:47.100 --> 00:03:50.400 saying by applying the the 1330 extension to 75 00:03:50.400 --> 00:03:53.700 a portfolio the clients risk exposures still that 76 00:03:53.700 --> 00:03:56.300 principle investment is what I'm hearing you say, 77 00:03:56.300 --> 00:03:59.400 however, I think what I think a really really strong 78 00:03:59.400 --> 00:04:01.700 point is that it's not necessarily 79 00:04:02.200 --> 00:04:05.900 the risk by putting the overlay but it actually can be a risk mitigator Phil 80 00:04:05.900 --> 00:04:09.200 you and I have run across these many many times where investors 81 00:04:08.200 --> 00:04:11.600 come to us and we look at their existing Holdings 82 00:04:11.600 --> 00:04:14.200 and we're working on a Case right now 83 00:04:14.200 --> 00:04:17.600 where the investor who probably should 84 00:04:17.600 --> 00:04:20.500 have a balanced portfolio between Brawley Diversified 85 00:04:20.500 --> 00:04:21.600 stocks and bonds. 86 00:04:22.200 --> 00:04:25.900 Is stuck in a single stock position that they 87 00:04:25.900 --> 00:04:28.200 can't do anything with because of the 88 00:04:28.200 --> 00:04:31.200 fact that it's it's got such a low cost basis if 89 00:04:31.200 --> 00:04:34.600 they were to sell that security. They would be looking at some significant. 90 00:04:35.400 --> 00:04:38.400 Tax consequences, but only a single 91 00:04:38.400 --> 00:04:41.300 stock is a real risky Endeavor. Oh, no question, 92 00:04:41.300 --> 00:04:41.800 and I think 93 00:04:43.300 --> 00:04:46.400 This is such an incredibly powerful benefit of this 94 00:04:46.400 --> 00:04:49.600 strategy. And I think it it sometimes is you know 95 00:04:49.600 --> 00:04:52.600 mentioned second after the the tax Alpha 96 00:04:52.600 --> 00:04:55.300 and hey, you can keep more of what you earn but this is so 97 00:04:55.300 --> 00:04:57.100 incredibly powerful, you know, thinking of 98 00:04:58.200 --> 00:05:01.300 Really sad examples through time like Enron, you know things went 99 00:05:01.300 --> 00:05:04.400 very bad for people who held most of their company 100 00:05:04.400 --> 00:05:07.200 stock a lot of incentive plans. These 101 00:05:07.200 --> 00:05:10.400 days will give employees options and shares and 102 00:05:10.400 --> 00:05:13.000 all that. So this is an issue or a lot 103 00:05:13.500 --> 00:05:16.700 of investors and I think this solution really is, you know virtuous and 104 00:05:16.700 --> 00:05:19.400 really helping them in their Financial Health and just to 105 00:05:19.400 --> 00:05:22.600 maybe put a finer point on it and at the 106 00:05:22.600 --> 00:05:25.900 risk of being a little repetitive, you know, if you own a 107 00:05:25.900 --> 00:05:29.200 large amount of your, you know, large amount of your financial wealth 108 00:05:28.200 --> 00:05:31.600 is in an oil stock or a 109 00:05:31.600 --> 00:05:32.100 tech stock. 110 00:05:32.700 --> 00:05:35.800 Immediately in putting on the 13030 strategy 111 00:05:35.800 --> 00:05:38.400 the the 30 extension the 112 00:05:38.400 --> 00:05:40.000 30 more long can hold. 113 00:05:40.700 --> 00:05:42.900 Every other industry except that one you hold. 114 00:05:43.500 --> 00:05:46.900 Imagine that diversification and then the short can reduce 115 00:05:46.900 --> 00:05:50.000 that exposure to that one industry. So overnight in 116 00:05:49.500 --> 00:05:52.400 what in in the first, you know 117 00:05:52.400 --> 00:05:55.700 day of transactions you go from hey, I 118 00:05:55.700 --> 00:05:58.800 might end up like Enron or wow. My my 119 00:05:58.800 --> 00:06:01.400 financial wealth is gonna ride up and down with 120 00:06:01.400 --> 00:06:04.900 the price of crude oil or how Google does and 121 00:06:04.900 --> 00:06:07.400 immediately you're getting more 122 00:06:07.400 --> 00:06:10.000 of a diversified Market portfolio. Even if 123 00:06:10.200 --> 00:06:13.900 you're just shooting toward maybe an S&P 500 Index. It's immediately 124 00:06:13.900 --> 00:06:16.100 beneficial Glen. I don't know if you'd add 125 00:06:16.100 --> 00:06:20.400 anything to that but I really find that as you know, powerful benefit 126 00:06:19.400 --> 00:06:22.400 to the end investor. Yeah, the 127 00:06:22.400 --> 00:06:25.900 your correct fell the deals exchange solution that 128 00:06:25.900 --> 00:06:28.300 quantino offers is really a use case 129 00:06:28.300 --> 00:06:31.400 that came about from client feedback. We're fortunate to 130 00:06:31.400 --> 00:06:34.400 work with a lot of family offices. These are very wealthy families that 131 00:06:34.400 --> 00:06:37.500 have concentration in their portfolio. 132 00:06:37.500 --> 00:06:40.300 They built wealth via service to a public company or 133 00:06:40.300 --> 00:06:43.400 investing in a company that went public and eventually 134 00:06:43.400 --> 00:06:46.000 They want to turn the corner from you know, 135 00:06:46.300 --> 00:06:50.600 this this wealth that has been built by that concentration turning 136 00:06:49.600 --> 00:06:52.400 the corner toward wealth preservation and that 137 00:06:52.400 --> 00:06:55.500 means diversification. So how do we do that in a tax efficient manner? 138 00:06:55.500 --> 00:06:58.800 There's exchange funds that we you 139 00:06:58.800 --> 00:07:01.500 know that are really an option for very wealthy families, but 140 00:07:01.500 --> 00:07:05.200 really not for clients at scale. They're multi-million 141 00:07:04.200 --> 00:07:07.200 dollar minimums their private 142 00:07:07.200 --> 00:07:10.500 Fund Solutions and you know, you're vestly 143 00:07:10.500 --> 00:07:13.800 investing in a hedge fund that's gonna take seven years to diversify 144 00:07:13.800 --> 00:07:15.500 and they're very expensive. So we always knew 145 00:07:16.600 --> 00:07:19.800 that if we could use our capabilities to help clients diversify 146 00:07:19.800 --> 00:07:22.100 concentrated positions to be a pretty powerful thing and 147 00:07:22.100 --> 00:07:25.600 that 30 by 30 extensions the the way we do that so, you 148 00:07:25.600 --> 00:07:27.100 know, we put that long short extension on 149 00:07:27.700 --> 00:07:30.300 The extension generates tax benefits along the 150 00:07:30.300 --> 00:07:33.100 way we can use that extension to reduce the risk of 151 00:07:33.100 --> 00:07:36.200 that concentrated position. You're totally right there. And then 152 00:07:36.200 --> 00:07:39.300 over time as we generate those consistent tax benefits 153 00:07:39.300 --> 00:07:42.300 that gives us a mechanism to sell 154 00:07:42.300 --> 00:07:45.900 down that concentrated position, but we're always matching 155 00:07:45.900 --> 00:07:48.300 the tax benefits that we generate with the 156 00:07:48.300 --> 00:07:51.100 capital gains that we are realizing by selling down that 157 00:07:51.100 --> 00:07:51.400 position. 158 00:07:52.400 --> 00:07:55.700 And then once we sell we're rebalancing into a 159 00:07:55.700 --> 00:07:58.300 diversified index of the advisor and the client's Choice 160 00:07:58.300 --> 00:08:01.900 could be S&P 500. It could be Global stocks really whatever 161 00:08:01.900 --> 00:08:04.700 the asset allocation decision ends up 162 00:08:04.700 --> 00:08:07.400 being so yeah a typical even low basis very 163 00:08:07.400 --> 00:08:10.500 low basis position 20% cost basis. We 164 00:08:10.500 --> 00:08:13.400 can help diversify in a tax efficient manner 165 00:08:13.400 --> 00:08:15.100 in around seven years. 166 00:08:16.300 --> 00:08:19.100 That's very cool. It's a very clever strategy. I mean 167 00:08:19.100 --> 00:08:23.200 we're talking about tax benefits, but what we're really talking about is 168 00:08:22.200 --> 00:08:24.500 transitioning a 169 00:08:25.300 --> 00:08:28.900 Well, I would consider a concentrate risky portfolio very 170 00:08:28.900 --> 00:08:31.200 risky at times into something that 171 00:08:31.200 --> 00:08:34.700 is more suitable for that investor more Diversified but 172 00:08:34.700 --> 00:08:37.600 doing it in a way that they don't 173 00:08:37.600 --> 00:08:40.900 have to feel the the pain of unwinding 174 00:08:40.900 --> 00:08:44.000 those positions that might have some very significant embedded 175 00:08:43.300 --> 00:08:46.600 gains. You know it our 176 00:08:46.600 --> 00:08:47.500 industry we get 177 00:08:49.100 --> 00:08:52.000 picked on I guess for being very jargony right a lot 178 00:08:52.600 --> 00:08:55.100 of jargon and terms that a lot of folks that 179 00:08:55.100 --> 00:08:58.400 are not in this industry on a daily basis and 180 00:08:58.400 --> 00:09:02.000 we throw out the term tax Alpha quite a bit and 181 00:09:01.300 --> 00:09:04.300 I'll throw this question out to both the a Phil and Glenn. 182 00:09:04.300 --> 00:09:07.700 Can we just Define what tax Alpha is 183 00:09:07.700 --> 00:09:10.400 and then can you quantify it? Sure. Yeah. Yeah 184 00:09:10.400 --> 00:09:13.300 to us. I think of tax Alpha is 185 00:09:13.300 --> 00:09:13.900 tax savings. 186 00:09:14.900 --> 00:09:18.400 So, you know if if quantino generates 187 00:09:17.400 --> 00:09:20.900 a dollar of short-term 188 00:09:20.900 --> 00:09:22.200 capital loss. 189 00:09:22.700 --> 00:09:25.700 Then if you have a short-term gain 190 00:09:25.700 --> 00:09:28.500 a dollar of short-term gains, that saves you 191 00:09:28.500 --> 00:09:32.200 40.8 percent. So I've saved the client 40 cents 192 00:09:31.200 --> 00:09:34.900 41 cents in tax. If 193 00:09:34.900 --> 00:09:37.400 I'm using that short-term law stuff set long 194 00:09:37.400 --> 00:09:41.300 term gains that that long-term gains rate essentially 23% 195 00:09:40.300 --> 00:09:43.400 at the federal level. So I've 196 00:09:43.400 --> 00:09:46.800 saved clients, you know, 24 cents 197 00:09:46.800 --> 00:09:49.000 on that dollar of a capital loss. 198 00:09:49.900 --> 00:09:52.700 So if I can consistently generate Capital losses 199 00:09:52.700 --> 00:09:55.700 if quantino can consistently do that. We're letting 200 00:09:55.700 --> 00:09:58.500 clients offset the capital gains 201 00:09:58.500 --> 00:09:59.500 that they have in their portfolio. 202 00:10:00.100 --> 00:10:03.600 and they're just keeping more of the return from those capital gains 203 00:10:03.600 --> 00:10:06.200 year to year and those capital gains from can come from a lot of different, 204 00:10:06.200 --> 00:10:08.500 you know Avenues it could be 205 00:10:09.300 --> 00:10:12.300 Capital gains distributions from Mutual Funds. It could 206 00:10:12.300 --> 00:10:15.700 be long-term gains realized from rebalancing your portfolio 207 00:10:15.200 --> 00:10:19.000 Etc. So to me tax Alpha 208 00:10:18.700 --> 00:10:21.200 is keeping more of that return in the 209 00:10:21.200 --> 00:10:24.400 client's pocket paying less in capital gains and using those 210 00:10:24.400 --> 00:10:27.800 Capital losses as a vehicle to do that great. 211 00:10:27.800 --> 00:10:30.500 That's a that's a very eloquent definition of 212 00:10:30.500 --> 00:10:33.300 taxol. Do you care to add that? Yeah. I I like that 213 00:10:33.300 --> 00:10:36.100 definition as well. Yeah. One thing I'd say is 214 00:10:36.100 --> 00:10:40.000 that I think there's again pretty broad agreement 215 00:10:39.300 --> 00:10:42.700 that long only tax loss harvesting 216 00:10:42.700 --> 00:10:45.300 does have a benefit to the portfolio 217 00:10:45.300 --> 00:10:48.500 and it might be, you know one to two percent maybe maybe 218 00:10:48.500 --> 00:10:51.500 two percent on you know, really good implementations call 219 00:10:51.500 --> 00:10:54.400 it one percent. But again that has a 220 00:10:54.400 --> 00:10:57.600 horizon that's gonna likely track down as your portfolio 221 00:10:57.600 --> 00:11:00.300 ossifies seizes up turns into 222 00:11:00.300 --> 00:11:03.600 our favorite word. No, you know, 223 00:11:03.600 --> 00:11:06.400 nothing with unrealized gains. So, you know, 224 00:11:06.400 --> 00:11:09.100 you're talking 1% dish in 225 00:11:09.700 --> 00:11:12.600 Long only tax less harvesting type of tax Alpha that 226 00:11:12.600 --> 00:11:15.300 that is going to go away in a handful 227 00:11:15.300 --> 00:11:18.700 of years, right? Thank you for that. One of 228 00:11:18.700 --> 00:11:21.800 the the questions and this is gonna go really to 229 00:11:21.800 --> 00:11:24.200 investment vehicle more so than anything else. I've heard 230 00:11:24.200 --> 00:11:27.400 investors say like 2022 for instance. 231 00:11:28.200 --> 00:11:31.400 Horrible, no good very bad year for investors Equity fixed 232 00:11:31.400 --> 00:11:35.100 income both down investors who hold actively 233 00:11:34.100 --> 00:11:36.800 managed mutual funds. 234 00:11:37.900 --> 00:11:38.900 having negative return 235 00:11:39.900 --> 00:11:42.500 But they also got a pretty hefty tax bill 236 00:11:42.500 --> 00:11:45.600 in some scenarios right capital gains distributions in 237 00:11:45.600 --> 00:11:48.500 December. So Phil when investors 238 00:11:48.500 --> 00:11:51.200 are looking at open-ended mutual funds what are 239 00:11:51.200 --> 00:11:54.700 some of the things that they should be considering from a tax efficiency standpoint, 240 00:11:54.700 --> 00:11:57.700 you raise a good point and to some extent 241 00:11:57.700 --> 00:12:00.300 those examples of you know, being down and 242 00:12:00.300 --> 00:12:03.600 having a gains distribution. That's an unlucky 243 00:12:03.600 --> 00:12:06.600 combination of a handful of things right like it comes 244 00:12:06.600 --> 00:12:09.300 down to perform some fun what the 245 00:12:09.300 --> 00:12:12.400 Redemption level was how the fun generates cash 246 00:12:12.400 --> 00:12:15.900 to meet those redemptions and whether 247 00:12:15.900 --> 00:12:18.600 or not that's kind of gain realizing 248 00:12:18.600 --> 00:12:21.700 lost real estate realizing or neutral history of 249 00:12:21.700 --> 00:12:24.500 the mutual funds experience can maybe give you 250 00:12:24.500 --> 00:12:28.000 some insight into that as well as the strategy whether 251 00:12:27.300 --> 00:12:30.500 it's going to be, you know tax efficient in 252 00:12:30.500 --> 00:12:33.800 a neutral kind of scenario and whether 253 00:12:33.800 --> 00:12:36.500 it's you know, growing or stable 254 00:12:36.500 --> 00:12:39.500 as opposed to, you know, shrinking with a lot of redemptions. 255 00:12:40.400 --> 00:12:43.800 you mentioned tack sorry investment vehicles so very often 256 00:12:43.800 --> 00:12:44.200 we 257 00:12:45.100 --> 00:12:48.600 We compare mutual funds and ETFs and there are some important differences 258 00:12:48.600 --> 00:12:51.300 there on the income side, they're pretty 259 00:12:51.300 --> 00:12:55.200 even right funds all funds have to distribute income and 260 00:12:55.200 --> 00:12:58.900 they can choose the frequency with which they do that. Some of 261 00:12:58.900 --> 00:13:01.500 the differences really come into play with capital gains 262 00:13:01.500 --> 00:13:04.400 realization. Now mutual funds to me 263 00:13:04.400 --> 00:13:07.300 to Redemption they have to do that with the cash in the fund. They might 264 00:13:07.300 --> 00:13:10.500 have enough cash. They might need to sell to realize that 265 00:13:10.500 --> 00:13:13.000 to fund that Redemption and some of 266 00:13:13.100 --> 00:13:16.900 the things I mentioned earlier, you know, whether they have enough cash what 267 00:13:16.900 --> 00:13:19.300 their tax Lots look like how their age 268 00:13:19.300 --> 00:13:22.600 how they're Diversified how the fund's been performing, you know 269 00:13:22.600 --> 00:13:25.300 frequency and magnitude of redemptions all that will 270 00:13:25.300 --> 00:13:28.600 kind of impact whether or not you're end. They have realized 271 00:13:28.600 --> 00:13:31.800 game they need to distribute or not with ETFs. 272 00:13:31.800 --> 00:13:34.400 There's a little more complexity in how they're traded 273 00:13:34.400 --> 00:13:38.100 and some of the some of the capital gains efficiencies. 274 00:13:37.100 --> 00:13:40.400 So you and I can trade an ETF 275 00:13:40.400 --> 00:13:43.300 on an exchange and that doesn't involve the fund at all, you know, you 276 00:13:43.300 --> 00:13:44.900 sell share I buy a share from you and 277 00:13:45.100 --> 00:13:49.000 The fund's not involved funds doesn't need to find cash pretty 278 00:13:48.300 --> 00:13:51.400 simple. But there are some transactions that do 279 00:13:51.400 --> 00:13:54.700 involve the fund, you know, something called authorized participants help 280 00:13:54.800 --> 00:13:57.300 ETFs trade efficiently 281 00:13:57.300 --> 00:14:00.900 and sometimes they'll redeem directly with the fund the 282 00:14:00.200 --> 00:14:03.100 ETF the ETF has a choice 283 00:14:03.100 --> 00:14:06.600 to you know, redeem in kind or give Securities to that 284 00:14:06.600 --> 00:14:09.500 redeeming entity, right and in 285 00:14:09.500 --> 00:14:12.400 doing that there's no transaction. There's no realization 286 00:14:12.400 --> 00:14:15.100 of of gains and it gets 287 00:14:15.100 --> 00:14:18.400 even more interesting because that the fun can choose 288 00:14:18.400 --> 00:14:22.300 which shares to redeem out and they can often redeem 289 00:14:21.300 --> 00:14:25.000 out the lowest cost basis shares. Thereby, you 290 00:14:24.400 --> 00:14:27.700 know creating a very tax efficient fund vehicle. 291 00:14:27.700 --> 00:14:31.200 The investors still needs to pay tax on their gain 292 00:14:30.200 --> 00:14:33.800 if they sell their shares, right, but the 293 00:14:33.800 --> 00:14:36.700 fund itself can get pretty creative in 294 00:14:36.700 --> 00:14:39.300 in reducing cap games realization. So, 295 00:14:39.300 --> 00:14:42.300 you know, it depends sometimes on the strategy, you know, 296 00:14:42.300 --> 00:14:44.900 fixing strategies might not be as 297 00:14:45.100 --> 00:14:48.600 Efficient in an ETF as as Equity strategies and some 298 00:14:48.600 --> 00:14:51.200 mutual funds can certainly be very tax efficient. So, you know, 299 00:14:51.200 --> 00:14:54.300 it comes down to you know, I think education getting the 300 00:14:54.300 --> 00:14:57.200 right investment strategy and then, you know also choosing the right vehicle 301 00:14:57.200 --> 00:15:00.800 now, that's that's really interesting and we've had conversations 302 00:15:00.800 --> 00:15:03.100 on the differences between ETFs and mutual funds on 303 00:15:03.100 --> 00:15:06.300 this podcast. And what's really fascinating to me again, 304 00:15:06.300 --> 00:15:09.300 I'm gonna use the term convenient byproduct the creation of 305 00:15:09.300 --> 00:15:12.900 redemption process of an ETF isn't designed 306 00:15:12.900 --> 00:15:15.700 for tax efficiency. It's designed to 307 00:15:15.700 --> 00:15:18.200 making sure that the 308 00:15:18.200 --> 00:15:21.300 nav is equal to the underlying basket of 309 00:15:21.300 --> 00:15:24.700 stocks in that process in itself makes ETFs 310 00:15:24.700 --> 00:15:26.100 extremely tax efficient. 311 00:15:26.900 --> 00:15:29.900 So it's not the goal but it is is something 312 00:15:29.900 --> 00:15:33.700 that you get through that process, which is interesting. Okay, 313 00:15:32.700 --> 00:15:35.300 so just kind of recap here for 314 00:15:35.300 --> 00:15:36.600 our investors. 315 00:15:38.400 --> 00:15:41.100 When considering your tax status with your 316 00:15:41.100 --> 00:15:44.700 portfolios consider what we call an evidence-based 317 00:15:44.700 --> 00:15:47.400 investment philosophy Buy and Hold that 318 00:15:47.400 --> 00:15:51.700 tends to lead to not only a greater likelihood of outperformance 319 00:15:50.700 --> 00:15:53.100 by staying the course, but it 320 00:15:53.100 --> 00:15:56.500 reduces frictions reduces transactions in 321 00:15:56.500 --> 00:16:00.400 the portfolio. Thus leading to a higher level of tax efficiency consider 322 00:15:59.400 --> 00:16:03.000 the vehicles that you're using when using 323 00:16:02.300 --> 00:16:06.100 open-ended mutual funds gravitate towards 324 00:16:05.100 --> 00:16:08.400 more passively managed growing mutual 325 00:16:08.400 --> 00:16:12.000 funds ETFs certainly have tax benefits and 326 00:16:11.200 --> 00:16:14.400 for those investors that are deploying a 327 00:16:14.400 --> 00:16:17.200 direct indexing strategy. There's certainly more 328 00:16:17.200 --> 00:16:21.100 opportunities through the sheer number of names to identify losses 329 00:16:20.100 --> 00:16:23.500 to perform ongoing tax loss harvesting 330 00:16:23.500 --> 00:16:26.200 and then lastly Glenn against thanks for 331 00:16:26.200 --> 00:16:29.700 joining us adding a long short 332 00:16:29.700 --> 00:16:33.100 extension a 1:30 strategy certainly can 333 00:16:32.100 --> 00:16:36.100 help not only from a diversification standpoint, 334 00:16:35.100 --> 00:16:37.200 but also from 335 00:16:38.300 --> 00:16:42.000 Alpha generating strategy. So Glenn. 336 00:16:41.200 --> 00:16:44.300 Thank you so much for your time Phil. Thank you for joining us 337 00:16:44.300 --> 00:16:47.200 here for our listeners. Thank you for for listening to 338 00:16:47.200 --> 00:16:50.200 us. You can access this podcast and all of 339 00:16:50.200 --> 00:16:53.900 our podcasts and our series anywhere you get your podcasts and 340 00:16:53.900 --> 00:16:56.000 I look forward to our conversation next time. Thank you 341 00:16:56.200 --> 00:16:59.800 so much gentlemen, thank you. Thanks Cemetery Partners. LLC 342 00:16:59.800 --> 00:17:02.600 is an investment advisor firm registered with 343 00:17:02.600 --> 00:17:05.400 the Securities and Exchange Commission The Firm only 344 00:17:05.400 --> 00:17:08.300 transacts business in states where it is properly 345 00:17:08.300 --> 00:17:11.600 registered or excluded or Exempted from 346 00:17:11.600 --> 00:17:14.300 registration requirements registration of 347 00:17:14.300 --> 00:17:17.400 an investment advisor does not imply any specific level 348 00:17:17.400 --> 00:17:20.600 of skill or training and does not constitute an 349 00:17:20.600 --> 00:17:23.700 endorsement of the firm by the commission. No one 350 00:17:23.700 --> 00:17:27.200 should assume that future performance of any specific investment investment 351 00:17:26.200 --> 00:17:30.200 strategy product or non-investment 352 00:17:29.200 --> 00:17:32.000 related content made reference to 353 00:17:32.600 --> 00:17:35.600 directly or indirectly in this material will be profitable. 354 00:17:36.600 --> 00:17:39.100 As with any investment strategy there is the 355 00:17:39.100 --> 00:17:42.700 possibility of profitability as well as loss due 356 00:17:42.700 --> 00:17:45.400 to various factors including changing market 357 00:17:45.400 --> 00:17:47.800 conditions and/or applicable laws. 358 00:17:48.600 --> 00:17:51.700 Content may not be reflective of current opinions 359 00:17:51.700 --> 00:17:54.800 or positions. Please note the material 360 00:17:54.800 --> 00:17:57.200 is provided for educational and background use 361 00:17:57.200 --> 00:18:00.700 only moreover. You should not assume that any discussion or 362 00:18:00.700 --> 00:18:03.800 information contained in this material serves as 363 00:18:03.800 --> 00:18:06.400 the receipt of or as a substitute for 364 00:18:06.400 --> 00:18:08.900 personalized investment advice.

Reducing Your Tax Bill - Part One

Play Episode Listen Later Feb 23, 2023 16:15

The “Tax-Man” cometh! As this tax season proceeds ever forward, many investors are asking themselves the same question - “am I going to take a large tax-hit this year?” We cannot say how much you'll be taxed on your present investments. But, we believe it's possible to structure your portfolio in a manner that mitigates tax-loss, and, leaves more money in your respective pockets. Joining us today is Philip McDonald, CFA, CAIA, Symmetry's Managing Director of Research and Investments & Glenn Shirley, CAIA, Head of Investor Relations for Quantinno, to explain how investors can more effectively structure their portfolios and avoid an excess of taxation. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. Transcript: 00:00:01.800 --> 00:00:07.400 Hello everyone. 1 00:00:07.400 --> 00:00:10.800 Welcome to unfiltered Finance. This is your host Tom Romano. 2 00:00:10.800 --> 00:00:13.800 I want to welcome you all back. We have a very 3 00:00:13.800 --> 00:00:17.100 interesting topic to discuss with you today. It's 4 00:00:16.100 --> 00:00:19.400 the notion of investors keeping more money in 5 00:00:19.400 --> 00:00:22.900 their pockets by bringing tax management into 6 00:00:22.900 --> 00:00:25.300 their investment Holdings. Not only are 7 00:00:25.300 --> 00:00:28.200 we going to talk about tax management, but some of the things investors should 8 00:00:28.200 --> 00:00:31.200 be considering in terms of how they view Capital markets how they should be 9 00:00:31.200 --> 00:00:34.400 investing and then we have a couple of special guests 10 00:00:34.400 --> 00:00:38.000 to talk about some additional strategies that investors should 11 00:00:37.400 --> 00:00:40.700 consider in terms of bringing tax 12 00:00:40.700 --> 00:00:43.700 Alpha if you will to the table so joining 13 00:00:43.700 --> 00:00:46.100 us is Phil McDonald who is the 14 00:00:46.100 --> 00:00:49.400 president of the panoramic trust and managing director of 15 00:00:49.400 --> 00:00:52.700 research of symmetry Partners as well as Glenn Shirley 16 00:00:52.700 --> 00:00:55.700 who is a principal and head of investor relations 17 00:00:55.700 --> 00:00:58.200 at quantino Capital Management Glen and 18 00:00:58.200 --> 00:01:01.500 Phil. Thank you so much for joining us here today. Thanks for having me tone. Thanks Tom. 19 00:01:01.500 --> 00:01:01.800 It's great. 20 00:01:01.900 --> 00:01:04.900 be with you, you know at quantino 100% of 21 00:01:04.900 --> 00:01:07.200 our focus is on taxable investors and 22 00:01:07.900 --> 00:01:10.500 We're managing portfolios while also seeking 23 00:01:10.500 --> 00:01:13.300 to generate really consistent and strong tax benefits 24 00:01:13.300 --> 00:01:16.800 for clients. And that goal is to maximize their 25 00:01:16.800 --> 00:01:19.400 after-tax wealth to help them keep as much return as possible 26 00:01:19.400 --> 00:01:22.200 year to year and we couldn't be more thrilled to partner with Symmetry and 27 00:01:22.200 --> 00:01:25.200 the incredible advisors that you serve. So thanks 28 00:01:25.200 --> 00:01:28.300 for having us pleasure to have you both. I look forward 29 00:01:28.300 --> 00:01:31.300 to to the today's dialogue. Sometimes taxes aren't the 30 00:01:31.300 --> 00:01:34.300 most interesting topic. However, I think that 31 00:01:34.300 --> 00:01:37.300 there's some very important information that investors should 32 00:01:37.300 --> 00:01:40.700 be considering in terms of how they invest their assets. And 33 00:01:40.700 --> 00:01:43.000 so thank you both for joining us. There's a couple 34 00:01:43.100 --> 00:01:46.100 of different angles. I want to take this conversation, right? And the first 35 00:01:46.100 --> 00:01:49.000 one I think I want to to go towards is 36 00:01:50.100 --> 00:01:53.500 Specific investment philosophies, right? So Phil we adhere 37 00:01:53.500 --> 00:01:57.300 to what we refer to as an evidence-based investment philosophy allowing 38 00:01:56.300 --> 00:01:59.200 markets to produce the returns that 39 00:01:59.200 --> 00:02:03.300 are investors are entitled to at the end of the day. So talk 40 00:02:02.300 --> 00:02:05.700 to us a little bit from a tax standpoint 41 00:02:05.700 --> 00:02:08.200 the benefits of an evidence-based investment 42 00:02:08.200 --> 00:02:09.500 philosophy versus 43 00:02:10.500 --> 00:02:13.500 Paying for Alpha or active 44 00:02:13.500 --> 00:02:16.600 money management. Mm-hmm. No, you raise a erase. 45 00:02:16.600 --> 00:02:19.700 Very good point Tom. So our investment philosophy all 46 00:02:19.700 --> 00:02:22.800 often refer to it as multi-factor investing. It 47 00:02:22.800 --> 00:02:27.300 involves specific rules quantitative indicators 48 00:02:26.300 --> 00:02:29.800 that research for 49 00:02:29.800 --> 00:02:32.100 a very long time has indicated, you know 50 00:02:32.100 --> 00:02:35.400 might create a premium over time. So following, you know, 51 00:02:35.400 --> 00:02:38.900 a value and small and momentum and high quality 52 00:02:38.900 --> 00:02:41.600 High profitability type of strategy you might 53 00:02:41.600 --> 00:02:44.700 expect to do a little bit better than just a cap weighted 54 00:02:44.700 --> 00:02:47.300 index over time what you get with 55 00:02:47.300 --> 00:02:50.900 that again is, you know, rules-based very Diversified. So 56 00:02:50.900 --> 00:02:53.700 for the most part low turnover right there, 57 00:02:53.700 --> 00:02:56.300 there are there are some strategies that have 58 00:02:56.300 --> 00:02:59.000 a little turnover specifically momentum. You probably have a little 59 00:02:59.100 --> 00:03:02.600 bit higher turnover than a market capitalization way to index but 60 00:03:02.600 --> 00:03:05.600 generally speaking, you know, these signals are relatively slow 61 00:03:05.600 --> 00:03:08.500 moving you're very diverseified. Each holding is 62 00:03:08.500 --> 00:03:10.200 a small percentage of your portfolio. 63 00:03:10.700 --> 00:03:13.300 So for the most part, you don't have to turn over 64 00:03:13.300 --> 00:03:16.400 the portfolio very often. You don't have to trade a lot sell a 65 00:03:16.400 --> 00:03:19.200 lot to reposition into the into the next 66 00:03:19.200 --> 00:03:22.700 Holdings you would want. I mentioned momentum alone has has a 67 00:03:22.700 --> 00:03:25.900 higher turnover as an individual strategy. There are 68 00:03:25.900 --> 00:03:29.100 benefits in putting it together with other factors specifically 69 00:03:28.100 --> 00:03:31.100 momentum and value work very well 70 00:03:31.100 --> 00:03:35.000 together because they're negatively correlated and in the same portfolio, 71 00:03:34.600 --> 00:03:37.000 the the turnover momentum can be 72 00:03:37.600 --> 00:03:41.000 somewhat counteracted in reduced by having other factors 73 00:03:40.200 --> 00:03:43.200 in there specifically value. So the 74 00:03:43.200 --> 00:03:46.400 pairing of factors can help with the tax efficiency of 75 00:03:46.400 --> 00:03:49.200 the portfolio, right momentum by definition is a high 76 00:03:49.200 --> 00:03:53.100 turnover strategy. Meaning there's a lot of trading right now this 77 00:03:52.100 --> 00:03:55.800 this signal is you know, essentially a year 78 00:03:55.800 --> 00:03:58.300 or so a little less than a year. So you would 79 00:03:58.300 --> 00:04:01.200 expect and that's the 80 00:04:01.200 --> 00:04:04.400 standard kind of academic one year price momentum type of 81 00:04:04.400 --> 00:04:07.700 indicator quantitative rule. So you'd 82 00:04:07.700 --> 00:04:10.400 expect momentum to lead to changes at about 83 00:04:10.800 --> 00:04:14.500 Near Horizon your portfolio, which is especially inconvenient 84 00:04:13.500 --> 00:04:16.300 to with regard to tax 85 00:04:16.300 --> 00:04:19.600 law because you know, you have the short-term long term type of 86 00:04:19.600 --> 00:04:22.300 cap gain consideration as well. Sure. So I 87 00:04:22.300 --> 00:04:25.400 mean we've had a lot of conversations about on this podcast about 88 00:04:25.400 --> 00:04:28.100 a fishing markets diversification Buy and Hold 89 00:04:28.100 --> 00:04:31.600 stay the course, but what I'm hearing you say is that just from a 90 00:04:31.600 --> 00:04:34.500 tax standpoint it almost sounds like it's a convenient byproduct of 91 00:04:34.500 --> 00:04:37.300 it hearing to a buy an old strategy. That's a 92 00:04:37.300 --> 00:04:40.700 great way to think about it and you you mentioned relative to 93 00:04:40.700 --> 00:04:43.400 other strategies. So I want to respond directly to 94 00:04:43.400 --> 00:04:46.300 that as well. So let's just call, you know, 95 00:04:46.300 --> 00:04:49.300 multi-factor Diversified investing as a strategy 96 00:04:49.300 --> 00:04:52.400 and investment philosophy relative to you know, 97 00:04:52.400 --> 00:04:55.800 kind of old-fashioned active management where a 98 00:04:55.800 --> 00:04:58.500 manager is picking and choosing you were stocks 99 00:04:58.500 --> 00:05:02.000 maybe reacting to Market events 100 00:05:01.100 --> 00:05:04.400 making predictions turning the portfolio over, 101 00:05:04.400 --> 00:05:07.400 you know, if you know, each position is about 10% 102 00:05:07.400 --> 00:05:10.100 you know, just selling one position creates a lot 103 00:05:10.100 --> 00:05:10.700 of turnover. 104 00:05:10.700 --> 00:05:13.400 Or so typically those actively managed strategies 105 00:05:13.400 --> 00:05:16.500 that are more concentrated and and require more 106 00:05:16.500 --> 00:05:19.300 trading are less tax efficient. Lord know 107 00:05:19.300 --> 00:05:22.800 that absolutely makes sense and Glenn. I know that you share in our 108 00:05:22.800 --> 00:05:25.400 view on how Capital markets work. Do you 109 00:05:25.400 --> 00:05:28.500 care to add anything to fills comments? Well, I think tax laws 110 00:05:28.500 --> 00:05:32.200 harvesting in general is a perfect strategy 111 00:05:31.200 --> 00:05:34.600 to use evidence based investing 112 00:05:34.600 --> 00:05:37.100 and I say that because tax laws are 113 00:05:37.100 --> 00:05:40.300 visiting at its core is you have names in the portfolio that 114 00:05:40.300 --> 00:05:43.300 are essentially winners. They've appreciated we want 115 00:05:43.300 --> 00:05:45.400 to hold those continue to hold those names. 116 00:05:46.300 --> 00:05:49.700 But you're gonna have stocks that have gone down those stocks 117 00:05:49.700 --> 00:05:52.400 in a really simple example you 118 00:05:52.400 --> 00:05:55.400 would sell but at that moment when you sell that 119 00:05:55.400 --> 00:05:55.700 name. 120 00:05:56.500 --> 00:05:58.300 You have to replace it with another stock. 121 00:05:59.300 --> 00:06:02.600 So at that moment, that's a perfect time to utilize 122 00:06:02.600 --> 00:06:05.200 your evidence-based beliefs. If 123 00:06:05.200 --> 00:06:08.100 you want to tilt the portfolio toward cheaper stocks or 124 00:06:08.100 --> 00:06:11.900 stocks with better attributes of quality or profitability. If you 125 00:06:11.900 --> 00:06:14.400 add that in to the stock 126 00:06:14.400 --> 00:06:17.500 selection of replacing that name via, which 127 00:06:17.500 --> 00:06:20.200 you've realized that tax loss then we believe you 128 00:06:20.200 --> 00:06:23.200 can add some nice return Over The Benchmark over 129 00:06:23.200 --> 00:06:23.400 time. 130 00:06:24.100 --> 00:06:28.100 So yeah tax loss harvesting and offering after tax improvements 131 00:06:27.100 --> 00:06:30.200 for clients can type very nicely with 132 00:06:30.200 --> 00:06:31.700 evidence-based investing. 133 00:06:32.400 --> 00:06:35.500 Yeah, I think that intentional turnover if you will with 134 00:06:35.500 --> 00:06:39.000 tasks lost harvesting does open up the door for some creativity 135 00:06:38.500 --> 00:06:41.600 is what I'm hearing. You say Glenn in order 136 00:06:41.600 --> 00:06:45.600 of enhancing returns. I mean I've seen in the past people liquidata 137 00:06:44.600 --> 00:06:47.600 position, they might hold cash for 30 138 00:06:47.600 --> 00:06:49.700 days or might replace it with an ETF. 139 00:06:50.700 --> 00:06:53.400 But Glenn what I'm hearing you say is that when that happens, there's 140 00:06:53.400 --> 00:06:54.600 opportunities to be a little bit more. 141 00:06:55.700 --> 00:06:58.900 Creative I guess the word when it comes to reinvesting those 142 00:06:58.900 --> 00:07:01.400 assets special specifically 143 00:07:01.400 --> 00:07:04.500 through a factor lens, right? That's right. And and 144 00:07:04.500 --> 00:07:07.300 I would also add Tom that's one advantage of 145 00:07:07.300 --> 00:07:10.600 the Symmetry platform versus maybe other tax loss 146 00:07:10.600 --> 00:07:13.700 harvesting options is that you know with with quantino 147 00:07:13.700 --> 00:07:16.600 involved we can add a modest long short extension 148 00:07:16.600 --> 00:07:19.300 to a strategy which gives it some 149 00:07:19.300 --> 00:07:22.400 unique advantages versus long only text less harvesting so 150 00:07:23.200 --> 00:07:26.800 And long only tax loss harvesting. You'll typically have a risk budget. 151 00:07:26.800 --> 00:07:29.500 So to speak, you know, there's only so much 152 00:07:29.500 --> 00:07:32.600 deviation versus The Benchmark the clients willing 153 00:07:32.600 --> 00:07:32.700 to take 154 00:07:33.600 --> 00:07:35.200 but with that risk budget 155 00:07:35.800 --> 00:07:38.300 If you do tilt toward maybe you're 156 00:07:38.300 --> 00:07:41.500 evidence-based beliefs would maybe value momentum 157 00:07:41.500 --> 00:07:44.900 you're taking up a little bit of that rich risk budget. So 158 00:07:44.900 --> 00:07:48.000 by taking up that risk budget, you're reducing the 159 00:07:47.800 --> 00:07:50.300 expected tax benefit because you're a 160 00:07:50.300 --> 00:07:52.400 little bit more constrained and tax less harvesting. 161 00:07:53.400 --> 00:07:56.200 So one disadvantage of perhaps long only text less 162 00:07:56.200 --> 00:07:59.800 harvesting with the long short extension that long 163 00:07:59.800 --> 00:08:02.500 short extension itself is the engine for tax benefit 164 00:08:02.500 --> 00:08:03.100 generation. 165 00:08:03.800 --> 00:08:06.300 So you can do a lot of created them things in 166 00:08:06.300 --> 00:08:09.100 the portfolio. You could tilt toward your your factors and 167 00:08:09.100 --> 00:08:12.900 your in your beliefs, but you're not giving up any expected 168 00:08:12.900 --> 00:08:13.600 tax benefit. 169 00:08:14.600 --> 00:08:17.400 If you're if you're employing that long short extension. 170 00:08:18.300 --> 00:08:22.300 Yeah, I kind of want to hang on that point Glen because we say 171 00:08:21.300 --> 00:08:25.100 and Phil I think would agree with with you 172 00:08:24.100 --> 00:08:27.000 that you know, there's no such thing as 173 00:08:27.100 --> 00:08:29.200 a perfect portfolio, right? Every portfolio is 174 00:08:30.200 --> 00:08:33.500 As it's trade-offs or is 175 00:08:33.500 --> 00:08:37.500 a compromise if you will and if you want tax efficiency 176 00:08:36.500 --> 00:08:40.400 as a main goal Factor investing 177 00:08:40.400 --> 00:08:43.200 might not be the best way to do it. It's a 178 00:08:43.200 --> 00:08:47.000 better way of doing it versus just a beta portfolio. But 179 00:08:46.100 --> 00:08:49.500 what I'm hearing you say Glens you get kind of The Best of Both Worlds 180 00:08:49.500 --> 00:08:52.500 by utilizing things like margin and 181 00:08:52.500 --> 00:08:55.400 short positions. Is that correct? I would 182 00:08:55.400 --> 00:08:58.900 I would agree that I would think the long short extension 183 00:08:58.900 --> 00:09:02.100 itself introduces more creativity in 184 00:09:01.100 --> 00:09:06.000 the portfolio because that 185 00:09:04.500 --> 00:09:07.800 engine of tax benefit generation 186 00:09:07.800 --> 00:09:10.900 is there it doesn't depend on the underlying portfolio 187 00:09:10.900 --> 00:09:13.500 for those strong and consistent text benefits. So, 188 00:09:14.400 --> 00:09:17.400 You have a lot more flexibility to implement the core part 189 00:09:17.400 --> 00:09:20.200 of that portfolio as you see fit. Sure. No, I think that makes 190 00:09:20.200 --> 00:09:24.000 a lot of sense. There's a lot of strategies that we're deploying now the 13030 191 00:09:23.300 --> 00:09:27.200 which you're alluding to Glenn I think is very interesting but filament 192 00:09:26.200 --> 00:09:29.400 in our experience, we've seen our new 193 00:09:29.400 --> 00:09:33.100 favorite word ossification, right which essentially means 194 00:09:32.100 --> 00:09:35.400 that when you own a a basket of 195 00:09:35.400 --> 00:09:39.300 security is whether it's ETS mutual funds are stocks at some 196 00:09:38.300 --> 00:09:42.000 point you get to an area 197 00:09:41.200 --> 00:09:44.300 over time where you can't do anything 198 00:09:44.300 --> 00:09:48.000 with that portfolio because of embedded gains, right 199 00:09:47.300 --> 00:09:51.100 and we've seen that over the years with our portfolios. 200 00:09:50.100 --> 00:09:53.700 Can you comment a little bit on that? Yeah, absolutely and 201 00:09:54.900 --> 00:09:57.200 The the irony in that 202 00:09:57.200 --> 00:10:00.300 situation is you should want to get there right because 203 00:10:00.300 --> 00:10:03.200 you want your portfolio to increase in value. So 204 00:10:03.200 --> 00:10:06.600 the way you you get to the point of having 205 00:10:06.600 --> 00:10:09.500 no unrealized losses in your portfolio to 206 00:10:09.500 --> 00:10:13.100 clip and realize for for tax efficient 207 00:10:12.100 --> 00:10:15.100 repositioning is your portfolio goes up 208 00:10:15.100 --> 00:10:19.200 over time and there's some interesting research on this. I think there's broad 209 00:10:18.200 --> 00:10:21.500 agreement that even in a 210 00:10:21.500 --> 00:10:24.300 diversified long only portfolio. You probably 211 00:10:24.300 --> 00:10:27.200 only have a single digit number of years, you know, some of 212 00:10:27.200 --> 00:10:30.200 it's going to depend on your assumptions and where the market goes and and how 213 00:10:30.200 --> 00:10:33.200 you've invested and how your tax Lots look but, you know, 214 00:10:33.200 --> 00:10:36.600 three four five years. Maybe might be the limit 215 00:10:36.600 --> 00:10:38.400 you have to do. 216 00:10:39.100 --> 00:10:42.900 Efficient tax less harvesting and that type of portfolio before you 217 00:10:42.900 --> 00:10:45.300 have to start to really give on the 218 00:10:45.300 --> 00:10:48.200 risk budget and and we refer to this idea 219 00:10:48.200 --> 00:10:51.700 of tracking error, which is you know, how different returns essentially 220 00:10:51.700 --> 00:10:54.100 will look relative to a benchmark and you start 221 00:10:54.100 --> 00:10:57.600 to to need to accept a lot of a lot of tracking error. If 222 00:10:57.600 --> 00:11:00.700 you're not willing to accept some realization of gains in 223 00:11:00.700 --> 00:11:03.500 in managing that portfolio. So all of a sudden, you know 224 00:11:03.500 --> 00:11:06.400 portfolio you you might be paying somebody to manage and 225 00:11:06.400 --> 00:11:09.700 do tax laws harvesting on becomes something 226 00:11:09.700 --> 00:11:12.400 that might look a little bit more like an expensive 227 00:11:12.400 --> 00:11:15.100 and noisy index. You don't have the ability to 228 00:11:15.100 --> 00:11:18.500 do many transactions in that so, you know, the 1330 that 229 00:11:18.500 --> 00:11:21.100 you and Glenn have started to talk about really frees up 230 00:11:21.100 --> 00:11:24.800 the opportunity to do something with that portfolio sure 231 00:11:24.800 --> 00:11:27.600 and you know, we talked a lot about direct indexing you 232 00:11:27.600 --> 00:11:30.400 and I did a podcast of a few episodes ago 233 00:11:30.400 --> 00:11:31.900 about direct indexing. 234 00:11:32.400 --> 00:11:35.700 And the more names the more tickers the 235 00:11:35.700 --> 00:11:38.200 more opportunity you have to harvest losses, but even 236 00:11:38.200 --> 00:11:41.100 with direct indexing when you hold maybe a hundred or so 237 00:11:41.100 --> 00:11:44.200 underlying stocks you do get it 238 00:11:44.200 --> 00:11:48.300 to a period where you you're eventually going to hold a basket 239 00:11:47.300 --> 00:11:50.600 of very low cost basis with 240 00:11:50.600 --> 00:11:52.900 high embedded gains securities. 241 00:11:53.500 --> 00:11:56.100 And so and the irony is that's the goal. 242 00:11:56.100 --> 00:11:59.100 You had alluded to like we want to see games in our 243 00:11:59.100 --> 00:12:02.100 portfolio. However, you know, we want our investors to be 244 00:12:02.100 --> 00:12:06.500 able to keep more in their pockets through through tax efficiency. So clunky. 245 00:12:05.500 --> 00:12:08.000 We started going down the path of the 246 00:12:08.900 --> 00:12:11.800 1330 strategy, right and in direct indexing 247 00:12:11.800 --> 00:12:14.600 certainly is a step up from a tax efficiency standpoint. 248 00:12:14.600 --> 00:12:17.300 It certainly helps describe for us a little bit about 249 00:12:17.300 --> 00:12:20.500 how that 130 30 works and multiple Market 250 00:12:20.500 --> 00:12:23.400 environments if you will sure that you 251 00:12:23.400 --> 00:12:26.600 Tom so, you know at the end of the day if you 252 00:12:26.600 --> 00:12:29.900 have a hundred dollars of a direct indexing portfolio 253 00:12:31.900 --> 00:12:34.400 maybe assume that direct indexing portfolio maybe 254 00:12:34.400 --> 00:12:37.900 has a 50% cost basis or a 60% cost basis 255 00:12:37.900 --> 00:12:40.200 that tends to be roughly the cost basis where 256 00:12:41.100 --> 00:12:44.700 You're kind of handcuffed from a tax benefit generation perspective. 257 00:12:44.700 --> 00:12:47.600 You know what quantina would do would be take 258 00:12:47.600 --> 00:12:50.800 that $100 portfolio use the the margin inherent 259 00:12:50.800 --> 00:12:52.800 in that account just like clients who 260 00:12:53.500 --> 00:12:56.200 You know borrow us modest amount from their Equity port for 261 00:12:56.200 --> 00:12:59.600 those from time to time use that same margin capability and then 262 00:12:59.600 --> 00:13:03.000 we're going to go long thirty dollars in short 263 00:13:02.400 --> 00:13:05.600 thirty dollars. So we're building a 130/30 strategy 264 00:13:05.600 --> 00:13:09.200 using the margin borrowing of 265 00:13:09.200 --> 00:13:12.700 that account. No other cash is required. That's an important part and 266 00:13:12.700 --> 00:13:15.000 then if you think about that $30 long $30 267 00:13:15.600 --> 00:13:18.400 short, that's gonna be Diversified across hundreds of stocks. 268 00:13:18.400 --> 00:13:21.600 Every tax loss harvesting strategy needs breath. You 269 00:13:21.600 --> 00:13:24.400 need just a lot of stocks to be invested in because you're gonna have winners 270 00:13:24.400 --> 00:13:27.900 and losers and then you think about that portfolios the 271 00:13:27.900 --> 00:13:30.500 market goes up as the market goes down. You have 272 00:13:30.500 --> 00:13:33.400 a little bit of a structural Advantage versus long only long only 273 00:13:33.400 --> 00:13:36.400 will tend to generate great tax benefits When the market dips 274 00:13:37.300 --> 00:13:40.600 But it struggles to generate tax benefits When the market Rises and 275 00:13:40.600 --> 00:13:43.100 you know clients invest in equities because they believe 276 00:13:43.100 --> 00:13:46.400 the Market's going to rise over time. So that short side of that portfolio is 277 00:13:46.400 --> 00:13:49.900 really important in the consistency of 278 00:13:49.900 --> 00:13:52.300 tax benefits over time. So if you have a 279 00:13:52.300 --> 00:13:55.300 long short portfolio on top of 280 00:13:55.300 --> 00:13:58.800 your direct indexing account, you're able to recharge 281 00:13:58.800 --> 00:14:01.300 tax benefits, you know almost immediately after 282 00:14:01.300 --> 00:14:04.400 you apply that long short extension. We can also use 283 00:14:04.400 --> 00:14:07.300 that to clean up the portfolios as 284 00:14:07.300 --> 00:14:10.700 Phil mentioned over time. You're tracking air may rise, you're making 285 00:14:10.700 --> 00:14:13.700 some deviations versus The Benchmark. So the 286 00:14:13.700 --> 00:14:15.500 risk in that portfolio is also Rising. 287 00:14:16.200 --> 00:14:20.300 So if you have an overexposure to say Information Technology, 288 00:14:19.300 --> 00:14:22.100 those names have done really well over the past 289 00:14:22.100 --> 00:14:26.200 five to 10 years. We can use the short book the short 290 00:14:25.800 --> 00:14:28.900 $30 of that portfolio to reduce 291 00:14:28.900 --> 00:14:31.900 some of that overweight which will help clients reduce 292 00:14:31.900 --> 00:14:34.500 risk in those accounts as well. So it's a combination of 293 00:14:35.400 --> 00:14:38.000 You know using that long short extension obviously to 294 00:14:38.400 --> 00:14:41.100 generate great text benefits and a consistent way for clients, but also 295 00:14:41.100 --> 00:14:45.000 to give them a better and less risky Investment Portfolio along 296 00:14:44.300 --> 00:14:47.300 the way. Thank you gentlemen, that that's very 297 00:14:47.300 --> 00:14:50.100 insightful for our listeners. Thank you for for listening to 298 00:14:50.100 --> 00:14:53.000 us. You can access this podcast and all of 299 00:14:53.100 --> 00:14:56.600 our podcasts and our series anywhere you get your podcasts, we're 300 00:14:56.600 --> 00:14:59.400 gonna continue this conversation. So for our listeners, be sure 301 00:14:59.400 --> 00:15:02.300 to tune in for part two on our topic of investing 302 00:15:02.300 --> 00:15:05.700 in taxes Cemetery Partners. LLC is 303 00:15:05.700 --> 00:15:08.600 an investment advisor firm registered with the Securities 304 00:15:08.600 --> 00:15:11.600 and Exchange Commission, The Firm only transacts business 305 00:15:11.600 --> 00:15:14.500 in states where it is properly registered or 306 00:15:14.500 --> 00:15:18.000 excluded or Exempted from registration requirements 307 00:15:17.300 --> 00:15:20.200 registration of an investment 308 00:15:20.200 --> 00:15:23.400 advisor does not imply any specific level of skill or 309 00:15:23.400 --> 00:15:26.300 training and does not constitute and endorsement 310 00:15:26.300 --> 00:15:29.400 of the firm by the commission. No one should assume that 311 00:15:29.400 --> 00:15:33.100 future performance of any specific investment investment strategy 312 00:15:32.100 --> 00:15:35.300 product or non-in. 313 00:15:35.600 --> 00:15:38.600 Related content made reference to directly or indirectly 314 00:15:38.600 --> 00:15:40.800 in this material will be profitable. 315 00:15:41.800 --> 00:15:44.200 As with any investment strategy there is 316 00:15:44.200 --> 00:15:47.900 the possibility of profitability as well as loss due 317 00:15:47.900 --> 00:15:50.600 to various factors including changing market 318 00:15:50.600 --> 00:15:53.700 conditions. And/or applicable laws the 319 00:15:53.700 --> 00:15:56.900 content may not be reflective of current opinions 320 00:15:56.900 --> 00:15:59.600 or positions. Please note the 321 00:15:59.600 --> 00:16:02.400 material is provided for educational and background use 322 00:16:02.400 --> 00:16:05.900 only moreover. You should not assume that any discussion or 323 00:16:05.900 --> 00:16:09.200 information contained in this material Services the 324 00:16:08.200 --> 00:16:11.500 receipt of or as a substitute for 325 00:16:11.500 --> 00:16:14.000 personalized investment advice.

600 Episodes Together – The Coaches Show

Play Episode Listen Later Jan 27, 2023 26:06

Phil McDonald and Bret Witkowski have been friends for many years and listeners of WSJM have been able to hear and see that friendship firsthand as they have shared the airwaves for High School Football and High School Basketball broadcasts and of course on “The Coaches Show”. This Saturday marks their 600th episodes working together, talking with area high school and college coaches. “The Coaches Show” has been a staple in the Southwest Michigan community for many years and it’s because of the passion and dedication to area sports and student athletes that these two share. Phil and Bret sat down with Jonny Reinhardt to talk about some of their favorite moments of the past and what they look forward to in the future.See omnystudio.com/listener for privacy information.

bret high school football high school basketball coaches show southwest michigan phil mcdonald

600 Episodes Together – The Coaches Show

Play Episode Listen Later Jan 27, 2023 26:06

Phil McDonald and Bret Witkowski have been friends for many years and listeners of WSJM have been able to hear and see that friendship firsthand as they have shared the airwaves for High School Football and High School Basketball broadcasts and of course on “The Coaches Show”. This Saturday marks their 600th episodes working together, talking with area high school and college coaches. “The Coaches Show” has been a staple in the Southwest Michigan community for many years and it's because of the passion and dedication to area sports and student athletes that these two share. Phil and Bret sat down with Jonny Reinhardt to talk about some of their favorite moments of the past and what they look forward to in the future.See omnystudio.com/listener for privacy information.

bret high school football high school basketball coaches show southwest michigan phil mcdonald

600 Episodes Together – The Coaches Show

Play Episode Listen Later Jan 27, 2023 26:06

Phil McDonald and Bret Witkowski have been friends for many years and listeners of WSJM have been able to hear and see that friendship firsthand as they have shared the airwaves for High School Football and High School Basketball broadcasts and of course on “The Coaches Show”. This Saturday marks their 600th episodes working together, talking with area high school and college coaches. “The Coaches Show” has been a staple in the Southwest Michigan community for many years and it's because of the passion and dedication to area sports and student athletes that these two share. Phil and Bret sat down with Jonny Reinhardt to talk about some of their favorite moments of the past and what they look forward to in the future.See omnystudio.com/listener for privacy information.

bret high school football high school basketball coaches show southwest michigan phil mcdonald

The Coaches – Nov. 5

Play Episode Listen Later Nov 5, 2022 117:22

From Full Circle Cafe and Espresso Bar. Phil McDonald is off this week. Bret Witkowski is joined by WSJM play by play voice G.B. Richmond.See omnystudio.com/listener for privacy information.

coaches richmond phil mcdonald

The Coaches – Nov. 5

Here We Go! - The Aberdeen FC Podcast

Play Episode Listen Later Nov 5, 2022 117:21

From Full Circle Cafe and Espresso Bar. Phil McDonald is off this week. Bret Witkowski is joined by WSJM play by play voice G.B. Richmond. We're talking St. Joseph Football, Lakeshore Tennis, Benton Harbor volleyball, and St.

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Substance

Play Episode Listen Later Oct 23, 2022 63:01

Phil McDonald is with us to talk away wins, stadium fantasies and looking upwards. Also, the first entry onto our list of Northern Lights.

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Personalized Direct Investing - Part Two

Play Episode Listen Later Sep 8, 2022 18:20

For the financial advisors in our audience, it's a cornerstone of quality service to address clients' concerns and meet their needs when customizing portfolios. In this episode of Unfiltered Finance, Symmetry's Tom Romano, Head of Strategic Relationships, and Phil McDonald, CFA, CAIA, Managing Director of Research Investments & Portfolio Manager, relay the importance of ongoing reevaluation (and reallocation) when managing a personalized index portfolio. To learn more about personalized direct investing visit http://www.symmetryaxiom.com You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.

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Personalized Direct Investing - Part One

Play Episode Listen Later Aug 25, 2022 28:01

Many high-net-worth individuals, and their families, have specific requirements, tax considerations, and investment preferences, that cannot be addressed by conventional investment options. Welcome back to Unfiltered Finance! In the first installment of this two-part episode, Symmetry's Tom Romano, Head of Strategic Relationships, and Phil McDonald, CFA, CAIA, Managing Director of Research Investments & Portfolio Manager, discuss the practice of personalized direct investing, how it works, and how it can be customized to suit investors' individual values. To learn more about personalized direct investing visit http://www.symmetryaxiom.com Listen to the full episode here: https://info.symmetrypartners.com/unfiltered-finance You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.

Division 2 Regional Championship: Benton Harbor vs Edwardsburg

Play Episode Listen Later Mar 17, 2022 98:23

Listen to Phil McDonald on the call as the Tigers battle the Eddies for the Division 2 Regional Championship.See omnystudio.com/listener for privacy information.

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Division 2 Regional Championship: Benton Harbor vs Edwardsburg

Here We Go! - The Aberdeen FC Podcast

Play Episode Listen Later Mar 17, 2022 98:23

Listen to Phil McDonald on the call as the Tigers battle the Eddies for the Division 2 Regional Championship.See omnystudio.com/listener for privacy information.

tigers division 2 eddies benton harbor regional championship phil mcdonald

You're in a Bad Way

Play Episode Listen Later Feb 11, 2022 64:05

Phil McDonald and Christy Keenan join us to review a week where the Dons only started playing when they went two goals down - not a recipe for success. While the season-defining tie at Fir Park looms large.

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Inflation & The Fed

Play Episode Listen Later Sep 30, 2021 22:31

The rise of anxiety over inflationary pressures has many looking to the Federal Reserve for a response. Why? Who are the Fed, and what do they do? What is this talk of “taper”? Are interest rates going up anytime soon? Should investors really care? Symmetry's Managing Director of Investments & Research, Phil McDonald, joins us on this episode and we attempt to answer these questions, and more! Visit us at https://www.symmetrypartners.com. You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.

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Phil McDonald - Episode 23 Part 2

Start From The Beginning

Play Episode Listen Later Aug 20, 2021 30:38

Southwest Michigan is a better place because there are people like Phil McDonald in the community working hard every day. That drive and outlook on life comes from having a great family around him. In this 2nd part of our conversation we talk about family, life and looking forward to every day! Let’s pick up from where we left off with Phil McDonald!See omnystudio.com/listener for privacy information.

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Episode 23: I Did It For All The Right Reasons with Phil McDonald

Start From The Beginning

Play Episode Listen Later Aug 11, 2021 31:46

His name is synonymous with sports in Southwest Michigan. Phil McDonald has spent over 35 years broadcasting games as well as entertaining audience on the radio and being an active person in our community. He is someone that I am honored to call him a dear friend. I had a chance to sit down with him on his last day of work at WSJM as he is moving on to be the Athletic Director at Lake Michigan Colleges. We talked about life, family, pasta, and of course sports! It was such a great conversation that I decided to split it into two parts! So please enjoy as we Start From The Beginning with Phil McDonald!See omnystudio.com/listener for privacy information.

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Fitness Friday With The YMCA Of Greater Michiana

Play Episode Listen Later Jul 30, 2021 2:22

Phil McDonald gets more fitness tips from Michelle Holloway from the YMCA of Greater Michiana.

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Stevensville Post 568 To Host Baseball State Championship

Play Episode Listen Later Jul 23, 2021 11:13

Stevensville Post 568 will be hosting the American Legion State Baseball Tournament at Lakeshore High School. Tournament dates are Thursday July 29 through Saturday July 31. Check out Phil McDonald's conversation with Jeff Bradford to get all of the details...

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Fitness Friday With The YMCA of Greater Michiana

Boxing Chat with Paul Nasari 2BACR 100.9FM

Play Episode Listen Later Jul 16, 2021 2:10

Phil McDonald gets more fitness tips from Michelle Holloway from the YMCA of Greater Michiana.

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Phil Mcdonald.

Play Episode Listen Later Jun 26, 2021 10:52

Phillip McDonald at 59 years his breaking records.

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Izzy Rothrock Continues To Live Her Softball Dreams Following Two Knee Injuries

Play Episode Listen Later Jun 25, 2021 14:14

After two ACL injuries, St. Joe grad Izzy Rothrock pushed though both major setbacks to continue to live her softball dreams. She and her Lady Bear teammates captured two district championships, she recently received 1st Team All-Conference, All-District, and All-Region honors, and will now continue her academic and softball careers at Wilmington College. Phil McDonald sat down with Izzy to talk about her two battles through recovery, winning the two district titles, and now having the opportunity to play college softball. Catch their conversation below...

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St. Joe Rocket Football Prepares For Another Season

Play Episode Listen Later Jun 3, 2021 26:25

Even though the school year hasn't officially ended yet, spot are filling up for next season for St. Joe Rocket Football. Camps and training activities are planned for the coming weeks. Phil McDonald talks with members of St. Joe Rocket Football as they look ahead to the upcoming season...

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Sheldon Nelson Set To Guide Benton Harbor Football

Play Episode Listen Later Jun 2, 2021 10:46

Benton Harbor High School has found it's new varsity football coach. Long time assistant Sheldon Nelson has been hired to lead the Tigers' program. Phil McDonald caught up with Coach Nelson to talk about his new post. Catch their conversation below...

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Jonathan Holloway – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later May 29, 2021 5:32

Jonathan Holloway of Lawton High School Track is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of May 16, 2021. At the Division 3 Regional Championship Meet, Jonathon won the Individual Regional title in the 300 Meter Low Hurdles with a time of :42.16. He also placed 2nd in the 110 Meter High Hurdles with a time of :16.63. Jonathan also ran a leg for the winning 400 Meter Relay team and third place 800 Meter Relay team. Jonathan is also a member of the Lawton Football and Basketball teams. In the classroom, he graduates with a 3.11 grade point average. After graduation, he'll be attending Olivet College to continue his academic and football careers. Other finalists for the week were Ellie Frost of South Haven Track, Gwen Grosvenor of Decatur Softball, and Erin Schneider of South Haven Softball. Catch Jonathan's conversation with Phil McDonald below…

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MI Lutheran’s Jordan Ramirez Signs With Martin Luther College

Play Episode Listen Later May 26, 2021 14:56

Michigan Lutheran senior Jordan Ramirez is wrapping up his four year career as a multi-sport standout with the Titans. Jordan has played a key roll for the Lutheran football, basketball, baseball, and soccer teams. He recently signed his national letter of intent to continue his academic and athletic careers at Martin Luther College in New Ulm, Minnesota. He plans to play both football and baseball at Martin Luther. Phil McDonald had a chance to talk to Jordan about his decision and also look back at the past four years. catch their conversation below...

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Wyatt Bailey – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Apr 3, 2021 5:37

Wyatt Bailey of Dowagiac High School Wrestling is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of March 21, 2021. Wyatt was crowned Division 3 Heavyweight Regional Champion. On his way to capturing the title, he won his quarterfinal and semifinal matches by pin. He then scored a tech fall in the championship match. Wyatt is also a member of the Dowagiac Football team and plans on playing baseball this spring. In the classroom, he carries a 3.46 grade point average. Another finalist for the week was Alexis Snodgrass of Hartford Basketball. Catch Wyatt’s conversation with Phil McDonald below…

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Fitness Friday With The YMCA – April 2

Play Episode Listen Later Apr 2, 2021 2:04

Fitness Friday with Phil McDonald and Michelle Holloway from the YMCA of Greater Michiana…

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Cameron Litaker – Berrien County Student Athlete of the Week

Play Episode Listen Later Mar 28, 2021 6:15

Cameron Litaker of Lakeshore High School Wrestling is the WSJM Sports Berrien County Student Athlete of the Week for the week of March 14, 2021. Cameron picked up a pin in 3:12 in his only match at Team Districts as he helped lead the Lancers to the title. Later in the week he went on to win the 119 lb. Individual District championship with an 18-1 decision over Edwardsburg, a 10-2 decision over Coldwater, and a 5-3 decision over Jackson Northwest. Cameron placed 3rd at State two years ago at 103 lbs. and 6th at State last year at 112 lbs. Cameron is the son of Howard and Jody Litaker. Catch Cameron's conversation with Phil McDonald below...

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Preston Calvert – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Mar 28, 2021 6:15

Preston Calvert of South Haven High School Wrestling is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of March 14, 2021. Preston helped lead the Rams to a second straight District championship and then went on to capture and Individual District title. At Team Districts, Preston scored two wins by pin. At Individual Districts, he picked up a semifinal win over the undefeated 7th ranked wrestler in the state the championship win over the returning state runner-up. Preston is also a member of the South Haven Football team. In the classroom, he carries a 3.11 grade point average. Preston is the son of Michelle Beck and Jason Calvert. Other finalists for the week were Matthew Allett of Decatur Basketball, Amara Littlefield of Bangor Basketball, and Harlee Burrows of South Haven Bowling. Catch Preston’s conversation with Phil McDonald below…

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Fitness Friday With The YMCA – March 26

Play Episode Listen Later Mar 27, 2021 2:38

Phil McDonald talks fitness tips with Michelle Holloway from the YMCA of Greater Michiana…

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Hunter Heath – Berrien County Student Athlete of the Week

Play Episode Listen Later Mar 20, 2021 6:50

Hunter Heath of Brandywine High School Wrestling is the WSJM Sports Berrien County Student Athlete of the Week for the week of March 7, 2021. In the Bobcats’ matches against Berrien Springs, Colon, and Buchanan, Hunter went 3-0 on the night with three pins. Later in the week, he turned in another 3-0 performance with wins over Bronson, Hanover-Horton, and Lawton. His opponent from Bronson was ranked #2 in the state and came into the match undefeated. During the week, Hunter became just the fifth wrestler in Brandywine history to record 150 wins. He is currently ranked #3 in the state at 160 lbs. Hunter is also a member of the Brandywine Football and Baseball teams. Hunter is the son of Dean and Paula Heath of Niles. Other finalists for the week were Dani Morrill of Bridgman Swimming & Diving and Morgan Labis of Lakeshore Competitive Cheer. Listen to Hunter's conversation with Phil McDonald below...

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Gavin Etter – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Mar 19, 2021 3:47

Gavin Etter of Marcellus High School Basketball is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of March 7, 2021. In the Wildcats’ game against Hartford, Gavin scored 26 points to go along with two assists and three rebounds. In the process of scoring the 26 points, he became the all-time leading scorer at Marcellus, breaking the old school record of 1,131 points. He followed that performance up with 22 points, one assist, and eight rebounds against White Pigeon. He ended the week with 14 points, one assist, and six rebounds against Fennville. Gavin is also a member of the Marcellus Football and Baseball teams, and National Honor Society. In the classroom, he carries a 3.51 grade point average. Gavin is the son of Jessica Madewell and Jeff Etter. Catch Gavin’s conversation with Phil McDonald below…

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Pod 218 - How to utilize insights to inform cannabis retail

BofC Live

Play Episode Listen Later Mar 2, 2021 9:11

On this episode of BofC Live, we connect with Phil McDonald and Abbey Bortolotti of Headset to talk about the new partnership between Headset and Business of Cannabis. This year, Headset will be the Official Insights Partner of Business of Cannabis – providing data and insights to the BofC audience through our newsletters, website, content and events.Learn more about Headset’s offerings for the cannabis industry.BofC Live is the daily news and interview program of Business of Cannabis. Business of Cannabis highlights the companies, brands, people and trends driving the sector.

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Dr. Chaps interviews Phil McDonald, author of “Unreal: Adventures of a Family's Global Life”

PIJN NEWS

Play Episode Listen Later Feb 25, 2021 28:30

Dr. Chaps interviews Phil McDonald, author of “Unreal: Adventures of a Family's Global Life” Phil share his story as an International Missionary doing sustainable development in over 38 countries with wife and four kids. Get free alerts at http://PrayInJesusName.org (c) 2021, Chaplain Gordon James Klingenschmitt, PhD. Airs on NRB TV, Direct TV Ch.378, Roku, AppleTV, Amazon FireTV, AndroidTV, GoogleTV, Smart TV, iTunes and www.PrayInJesusName.org #DrChaps, #PIJN, #PrayInJesusNameNews, #PrayTheNews, #BLM, #ALM, #NLM, #EndTimes, #Prophecy, #Jesus, #Trump, #RightToDie, #HumanRights, #NavyChurch, #ReligiousFreedom, #ExecutiveResponse, #Law&Order, #CivicChange, #SocialismKills, #Biden, #ReligiousFreedom, #PhilMcDonald

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Dr. Chaps interviews Phil McDonald, author of “Unreal: Adventures of a Family’s Global Life”

PIJN NEWS

Play Episode Listen Later Feb 25, 2021 28:30

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Jason Jergens – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Feb 20, 2021 4:14

Jason Jergens of Howardsville Christian High School Basketball is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of February 7, 2021. In the Eagles’ season opening win over Battle Creek Academy, Jason finished with 17 points, five assists, and four rebounds. In a win over Marcellus, he poured in a career high 42 points to go along with two rebounds. He finished the week with 35 points and six assists in a win over Countryside Academy. Jason is also a member of the Howardsville Christian Soccer, Baseball, and Golf teams. In the classroom, he carries a 4.0 grade point average. Jason is the son of Tim and Tonya Jergens of Mendon. Catch Jason’s conversation with Phil McDonald below…

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Area Caddie Brock Strebeck Earns Evans Scholarship

Play Episode Listen Later Feb 4, 2021 10:29

Lakeshore senior Brock Strebeck, a caddie at Point O' Woods Golf and Country Club, has earned the prestigious Evens Scholarship from the Western Golf Association. Phil McDonald talk with Brock about the honor...

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Area 8-Man Football Landscape

Play Episode Listen Later Dec 15, 2020 11:53

8-Man high school football in Southwest Michigan has continued to grow over the past several years. Phil McDonald talks with Lawrence High School Athletic Director Aaron Amthor on how the landscape has changed and the possibility of more expansion...

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Coloma’s Koenigshof Named D-3’s Top Pitcher

Play Episode Listen Later Dec 9, 2020 8:45

2020 Coloma High School graduate Megan Koenigshof was named Michigan's top pitcher in Division 3 by the Michigan High School Softball Coaches Association. The honor is a cumulative award based on four years of performance. Michigan's 2020 softball season was wiped out due to COVID-19, so the distinction was based on Megan's freshman, sophomore, and junior years. Megan is now attending Grand Valley State University and is a member of the Lakers' Softball team. Below is Phil McDonald's conversation with Megan...

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Elinor Frost – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Nov 21, 2020 5:53

Elinor Frost of South Haven High School Swimming is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of November 8, 2020. At the Second Shave Meet, Ellie qualified for the State Finals in the 100 Meter Fly with a school record breaking time of 1:00.18. The state cut time was 1:03.49. She has also qualified for the State Finals in the 50 Meter Free and 100 Meter Free events. Ellie is also a member of the South Haven Track team, National Honor Society, Band, Tri M Music Society, Quiz Bowl Team, and Be Nice Program. In the classroom, she carries a 4.395 grade point average. Ellie is the daughter of John and Carey Frost of South Haven. Catch Ellie’s conversation with Phil McDonald below…

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Jordyn Holland – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Nov 14, 2020 5:11

Jordyn Holland of South Haven High School Volleyball is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of November 1, 2020. In the Rams’ District Tournament first round win over Benton Harbor, Jordyn turned in 13 assists, three digs, and two aces. Then in their semifinal win over Coloma, she finished with 36 assists, 17 digs, one kill, and one ace. She ended the week with 36 assists, 12 digs, and three kills in the Rams’ District Championship win over Otsego. Jordyn is also a member of the South Haven Basketball and Softball teams. In the classroom, she carries a 3.4 grade point average. Jordyn is the daughter of Joseph and Kelly Holland of South Haven. Other finalists for the week were Aleena Keh of South Haven Volleyball and Ellie Frost of South Haven Swimming. Catch Jordyn’s conversation with Phil McDonald below…

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Wes Franzel – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Nov 8, 2020 5:55

Wes Franzel of Howardsville Christian High School Soccer is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of October 25, 2020. Wes scored three goals in helping lift the Eagles to a Regional Semifinal win over Bangor. He capped off his senior season by earning All-Conference honors for three years, All-District honors for three years, and All-Regional honors for two years. In the classroom, Wes carries a 3.95 grade point average. Wes is the son of Daryl and Tamara Franzel of Three Rivers. Another finalist for the week was Aleena Keh of South Haven Volleyball. Catch Wes’ conversation with Phil McDonald below…

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Reid Haskins – Berrien County Student Athlete of the Week

Play Episode Listen Later Oct 31, 2020 6:05

Reid Haskins of Bridgman High School Football is the WSJM Sports Berrien County Student Athlete of the Week for the week of October 18, 2020. Bridgman came back from a 47 point deficit to defeat Tri-Unity Christian 54-53 in overtime. Reid helped lead the Bees’ comeback by throwing for 190 yards and a touchdown, and rushing for 166 yards and five more touchdowns. In all, he accounted for 356 yards in offense. On the defensive side of the ball, he recorded ten tackles. Reid is also a member of the basketball and baseball teams, and represented Bridgman at the BCS Student Leadership Conference. In the classroom, he carries a 4.0 grade point average. Reid is the son of Erik and Keri Haskins of Berrien Springs. Other finalists for the week were Johnny Rager of Buchanan Football, Seth Walters of St. Joe Soccer, and Ericka Lopez of Eau Claire Cross Country. Catch Reid's conversation with Phil McDonald below...

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Cody Palgen – Berrien County Student Athlete of the Week

Play Episode Listen Later Oct 24, 2020 5:03

Cody Palgen of Coloma High School Football is the WSJM Sports Berrien County Student Athlete of the Week for the week of October 11, 2020. In the Comets’ 24-16 win over Watervliet, Cody caught nine passes for 129 yards and two touchdowns. That brought his season totals to 24 catches for 453 yards and eight touchdowns. On defense, he came away with an interception in the end zone in the closing minute of the game to secure the win. Cody is also a member of the Coloma Baseball team. In the classroom, he carries a 3.5 grade point average. Cody is the son of Lisa Van Pelt of Coloma. Other finalists for the week were Samantha Dietz of Watervliet Volleyball and Allison Glendening of Lake Michigan Catholic Cross Country. Catch Cody's conversation with Phil McDonald below...

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Joe Furlan – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Oct 24, 2020 5:24

Joe Furlan of Bloomingdale High School Cross Country is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of October 11, 2020. Joe won the final Southwest 10 Conference Jamboree with a time of 17:27.53, capping off an undefeated conference season for him. In the process, he helped lead the Cardinals to the Southwest 10 Team Championship. He followed that performance up with a second place finish at the Charger Mini-Meet with a time of 17:06.6. Joe is also a member of the Bloomingdale Track team and is a volunteer firefighter for the Columbia Township Fire Department. In the classroom, he carries a 3.5 grade point average. Joe is the son of John and Julie Furlan of Grand Junction. Another finalist for the week was Grace Lundy of South Haven Swimming. Catch Joe’s conversation with Phil McDonald below…

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Aaron Robles – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Oct 17, 2020 4:12

Aaron Robles of Hartford High School Soccer is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of October 4, 2020. In the Indians’ 7-1 win over Michigan Lutheran, Aaron led the way with two goals and two assists. He followed that up with a goal and an assist in a 6-0 win over Bangor. He then finished the week with an assist in a 5-0 win over Bloomingdale. Aaron is also a member of the Hartford Basketball team and Spanish Club. In the classroom, he carries a 3.74 grade point average. Aaron is the son of Abel and Santa Robles of Lawrence. Another finalist for the week was Cianna Cox of South Haven Swimming. Catch Aaron’s conversation with Phil McDonald below…

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Maya Hunter – Berrien County Student Athlete of the Week

Play Episode Listen Later Oct 17, 2020 4:13

Maya Hunter of St. Joseph High School Golf is the WSJM Sports Berrien County Student Athlete of the Week for the week of October 4, 2020. As St. Joe won the Division 2 Regional title, Maya captured the individual Regional championship with a three stroke victory. Later in the week, she won the Southwestern Michigan Athletic Conference West Division individual title. In the process, she led St. Joe to a ninth straight division championship. Maya is also a member of the St. Joe Basketball and Soccer teams, and Orchestra. In the classroom, she carries a 3.88 grade point average. Maya is the daughter of Marc and Joyce Hunter of St. Joe. Other finalists for the week were Samantha Dietz of Watervliet Volleyball, Karly Klaer of St. Joe Volleyball, and Corban Gamble of Brandywine Tennis. Catch Maya's conversation with Phil McDonald below...

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Van Buren/Cass Student Athlete of the Week – Sydney Barnes

Play Episode Listen Later Oct 10, 2020 4:39

Sydney Barnes of South Haven High School Golf is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of September 27, 2020. Sydney won the Kalamazoo Valley Association individual conference championship by firing an 89 at the league championship match. She followed that up by tying for third place at regionals. Her effort helped South Haven qualify for the State Finals in Girls’ Golf for the first time in school history. Sydney is also a member of the South Haven Marching Band, Jazz Band, Orchestra, and Tri Music Honor Society. In the classroom, she carries a 4.25 grade point average. Sydney is the daughter of Jason and Nancy Barnes of South Haven. Other finalists for the week were Gavin Etter of Marcellus Football, Elinor Frost of South Haven Swimming, and Wesley Franzel of Howardsville Christian Soccer. Catch Sydney’s conversation with Phil McDonald below…

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Van Buren/Cass Student Athlete of the Week – Trent Till

Play Episode Listen Later Oct 3, 2020 4:33

Trent Till of South Haven High School Football is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of September 20, 2020. In the Rams’ win over Niles, Trent rushed for 112 yards on 15 carries and scored a touchdown. He also threw for another score. On special teams, Trent returned three kicks for 92 yards and two punts for 35 yards. In all, he accounted for 239 all-purpose yards. On defense, he recorded five tackles. Trent is also a member of the South Haven Wrestling and Baseball teams. In the classroom, he carries a 3.9 grade point average. Trent is the son of Chris and Sarah Till of South Haven. Another finalist for the week was Aaron Robles of Hartford Soccer. Catch Trent’s conversation with Phil McDonald below…

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Berrien County Student Athlete of the Week – Drew Goodline

Play Episode Listen Later Sep 27, 2020 4:53

Drew Goodline of Coloma High School Football is the WSJM Sports Berrien County Student Athlete of the Week for the week of September 13, 2020. In the Comets’ 36-34 win over Delton Kellogg, Drew was 7 of 9 passing for 203 yards and four touchdowns. Two of his touchdown passes went for 50 and 90 yards. He also ran the ball four times for 47 yards and a touchdown. In all, Coloma had just six possessions the entire game and Drew engineered scoring drives on each one of them. Drew is also a member of the Coloma Basketball team and National Honor Society. In the classroom, he carries a 3.84 grade point average. Drew is the son of Wendy and Chad Goodline. Other finalists for the week were Troy Pratley of St. Joe Football, Allison Glendening of Lake Michigan Catholic Cross Country, Spencer Harris of Michigan Lutheran Football, and Samantha Dietz of Watervliet Volleyball. Catch Drew's conversation with Phil McDonald below...

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Van Buren/Cass Student Athlete of the Week – Kendra Koster

Play Episode Listen Later Sep 26, 2020 3:34

Kendra Koster of Lawton High School Cross Country is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of September 13, 2020. Kendra placed first at the Watervliet Quad with a time of 21:36. She followed that up with another first place finish at the Decatur Quad with a time of 20:51. Previous to these two meats, she also won the Lawrence Quad. As a freshman, Kendra also intends on being a member of the Lawton Basketball, Track, and Soccer teams. Kendra is the daughter of Steve and Julia Koster of Lawton. Other finalists for the week were Josie Buchkowski of Lawton Volleyball and Wes Franzel of Howardsville Christian Soccer. Catch Kendra’s conversation with Phil McDonald below…

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Berrien County Student Athlete of the Week – Nathan Isbrecht

Play Episode Listen Later Sep 19, 2020 6:09

Nathan Isbrecht of Watervliet High School Soccer is the WSJM Sports Berrien County Student Athlete of the Week for the week of September 6, 2020. In the Panthers’ 10-2 win over Parchment, Nathan finished with six goals and one assist. His six goals ties him for 28th all-time on the MHSAA’s list of most goals scored in a single game. Later in the week, he turned in two goals and three assists in Watervliet’s 5-1 win over Bridgman. Nathan is also a member of the Watervliet Wrestling team and ran Cross Country his freshman and sophomore years. In the classroom, he carries a 3.96 grade point average. Nathan is the son of Tom and Kim Isbrecht of Watervliet. Other finalists for the week were Jacob Fox of Brandywine Tennis and Claire Shelton of Buchanan Volleyball. Catch Nathan's conversation with Phil McDonald below...

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Van Buren/Cass Student Athlete of the Week – Luke Muvrin

Play Episode Listen Later Sep 18, 2020 4:36

Luke Muvrin of Paw Paw High School Soccer is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of September 6, 2020. In the Red Wolves’ 1-1 tie with Otsego, Luke faced 23 shots on goal and made 22 saves, including a diving one handed save late in the second half to preserve the tie. He then made 17 saves on 18 shots in a win over Niles. Luke also serves as a Peer Assistant Leader and is a member of the Paw Paw Track team, National Honor Society, and Key Club. In the classroom, he carries a 3.68 grade point average. Luke is the son of Joe and Jen Murvin of Paw Paw. Other finalists for the week were Christian Johnson and Kendrick Brown of Paw Paw Tennis, and Hannah Richmond of Paw Paw Cross Country. Catch Luke’s conversation with Phil McDonald below…

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EMEA Recruitment Podcast - Episode 57 - Dr. Phil McDonald - Consultant Anesthetist/Medical Director with Operation Smile UK

EMEA Recruitment Podcast

Play Episode Listen Later Sep 14, 2020 40:12

EMEA Recruitment were delighted to welcome Dr. Phil McDonald, Consultant Anaesthetist and Medical Director at Operation Smile UK, to our podcast. “Without you guys raising funds and supporting us, we just wouldn’t be able to do the work.” We are incredibly proud to be supporting Operation Smile UK as our podcast partner, through which we hope to raise vital funds and awareness for the life-changing work that they do. EMEA Recruitment has a personal connection to the charity, as our Founder, Paul Toms, explains at the beginning of this episode. We are delighted to be working alongside Operation Smile to transform lives around the world. Phil, who is a Co-Founder of Operation Smile UK, was kind enough to speak with Paul about his incredible experiences working on medical missions across the globe, to improve the lives of children and adults alike. It’s a wonderful story of how Phil accidentally found himself on an Operation Smile medical mission, took the opportunity to set up the charity in the UK, and now provides more than 19,000* surgeries to children and adults every year, and trains medical professionals abroad to carry out this vital surgery. He also has some heart-warming stories from children and adults in developing countries, which he claims never stop having an impact. Listen to the full episode to learn more about Phil’s long-term goals for the charity and how he helps children (and their parents) feel at ease before surgery… Some useful timestamps can be found below: 02:09 How Dr. Phil got involved with Operation Smile and helped set up the charity 07:13 How working as consultant anaesthetist aids his work in Operation Smile 10:00 The importance of empathy when dealing with anxiety during surgery 12:00 Operation Smile’s mission 22:00 What Dr. Phil has learnt from working with Operation Smile 23:45 How Operation Smile helps local health care professionals to become self-sustaining and self-sufficient 30:30 The challenges of operating during the pandemic and how organisations can help 35:20 How vital funding is to Operation Smile 38:25 How to connect with Dr. Phil Through our partnership, Operation Smile UK will feature on our podcasts moving forward. Find out more about how we’re supporting the work that they do here: https://www.emearecruitment.eu/operation-smile We hope you enjoy this podcast episode. Please share with your network to listen to Phil’s story. The EMEA Recruitment podcast is hosted by the Founder of EMEA, Paul Toms, and Executive Recruiter and Senior Consultant, Jenny Callum. To find out more about EMEA Recruitment, visit: https://emearecruitment.eu Follow us on LinkedIn here: https://www.linkedin.com/company/emea-recruitment-limited/ Connect with Paul on LinkedIn at: https://www.linkedin.com/in/paultomsemea Or Jenny: https://www.linkedin.com/in/jennycallumemea If there are any questions or topics you would like covered in future EMEA Recruitment podcasts, please send us a message on LinkedIn and we will look to help. *Operation Smile provided more than 19,000 surgeries to children and adults in FY19. #emearecruitmentpodcast #emearecruitment #podcast #drphilmcdonald #operationsmileuk

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Insights On The Senior PGA Championship Cancellation

Play Episode Listen Later Apr 2, 2020 9:31

The COVID-19 crisis has forced this spring's KitchenAid Senior PGA Championship at Harbor Shores to be cancelled. The PGA of America, along with KitchenAid, made the announcement Thursday morning in following the recommendations of government and health agencies. Championship Director Ryan Ogle spoke with Phil McDonald about the decision. You can listen to the discussion below...

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Micah Hanau – Berrien County Student Athlete of the Week

Play Episode Listen Later Mar 16, 2020 6:05

Micah Hanau of Lakeshore High School Wrestling is the WSJM Sports Berrien County Student Athlete of the Week for the week of March 1, 2020. Micah won the Individual State Championship at 130 Pounds. He won his opening round match with a 10-0 decision over Donn Bacon of St. Clair Shores. He followed that up with a 13-1 decision over Cris Perez of Allendale in the quarterfinals. In the semifinals, he took Rico Brown of Gaylord into overtime and came away with a 4-2 decision. Micah then captured the state title with a 4-1 overtime decision over Zeth Strejc of Lowell. Micah is also a member of the Lakeshore Cross Country team and Michigan West Wrestling team. In the classroom, he carries a 3.5 grade point average. Micah is the son of Cathy Taylor and John Hanau. Another finalist for the week was Rebekah Hisle of Michigan Lutheran Basketball. Catch Micah's conversation with Phil McDonald below...

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Kaeler Stafne – Van Buren/Cass Student Athlete of the Week

Play Episode Listen Later Mar 8, 2020 3:40

Kaeler Stafne of Marcellus High School Basketball is our WSJM Sports Van Buren/Cass Student Athlete of the Week for the week of February 16, 2020. In the Wildcats’ win over Bloomingdale, Kaeler scored his 1,000th career point, becoming the third player in school history to accomplish the milestone. He finished with 26 points and 21 rebounds in the game. Earlier in the week, he turned in 14 points, four assists, nine rebounds, and two blocked shots against Cassopolis. Kaeler is also a member of the Marcellus Football and Golf teams, National Honor Society, Spanish Honor Society, and SADD. In the classroom, he carries a 3.98 grade point average. Kaeler is the son of James and Jamie Stafne of Jones. Catch Kaeler’s conversation with Phil McDonald below…

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Lancer Comments After Portage Central Win