Active vs. Passive Strategies

Brett discusses the importance of allocating to strategies rather than asset classes, emphasizing that hedge funds and long-short equity should be evaluated based on their expected returns and risks. He categorizes strategies into higher risk, higher returning and stable, lower risk, highlighting the nuanced approach of using both active and passive strategies in investment decisions. The conversation delves into the timing of these allocations, suggesting that adjustments are made primarily on a long-term basis rather than daily or quarterly.