What's the Alternative? | Season 3 | Episode 9 | Beyond the 60/40: Navigating the Complex World of Return Stacking with Corey Hoffstein
- Shana Sissel
- Apr 7
- 1 min read
In this episode of What's the Alternative? host Shana Orczyk Sissel sits down with Corey Hoffstein Co-Founder and Chief Investment Officer of Newfound Research, to demystify return stacking, a modern evolution of Portable Alpha that layers diversifying strategies onto existing portfolios using capital‑efficient instruments. They contrast long‑run diversification benefits with the short‑term pain clients feel, and explain how modest, well‑structured stacks can preserve core allocations while improving risk‑adjusted outcomes.
Corey and Shana walk through the role of leverage, practical implementation choices, and sensible sizing heuristics to minimize client friction. The conversation delivers actionable guidance on designing stacks that enhance diversification without triggering performance anxiety, plus perspectives on where this trend is headed in wealth management.
Key takeaways:
Return stacking lets you add diversifying exposures via leverage and derivatives without cutting core holdings.
Prudently used leverage can be a diversification tool, not just a risk amplifier.
Practical sizing: modest, diversified stacks tend to balance benefits and client acceptance.
Designing for behavioral time, reducing visible short‑term pain, is crucial to keeping clients invested in statistically sound strategies.
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