Hey Aahan, I noticed the relatively large allocation to TIP, but I thought inflation is cooling. Can you give a little more color on what your models are saying? Thanks!
The TIPs allocations aren't meant to be super "high alpha". The idea with Crisis Protection is mainly to get mechanical diversification benefits, without taking on big left-tailed risks. So I can't say that there's a high edge inflation view baked into the TIPs position. We're just holding them as anti-equities which have decent carry
Hey Aahan, I noticed the relatively large allocation to TIP, but I thought inflation is cooling. Can you give a little more color on what your models are saying? Thanks!
Hey, good question!
The TIPs allocations aren't meant to be super "high alpha". The idea with Crisis Protection is mainly to get mechanical diversification benefits, without taking on big left-tailed risks. So I can't say that there's a high edge inflation view baked into the TIPs position. We're just holding them as anti-equities which have decent carry