Intro: Listen to this captivating episode featuring a trailblazer in the world of investing, Bob Elliott, CEO and CIO of Unlimited. With an impressive background, including a senior investment role at Bridgewater Associates, Bob has now set his sights on democratizing the investment landscape for “Main street investors.”  Karen and Bob explore the slow adoption of crowdfunding investing and highlight the significant potential it holds for average individuals. Bob will share his innovative “replication” strategy, which offers flexibility and cost efficiency, much like the Kirkland Signature products providing brand-name quality at lower prices. We’ll unravel the benefits of ETFs, especially the newly emerging actively managed ones, and the pivotal regulatory changes that have opened sophisticated investment strategies to the general public.

Listen as Karen and Bob discuss his mission to make institutional-level asset management accessible to all, tackling the challenges faced by individual investors in today’s volatile market, and the future potential of actively managed ETFs. Don’t miss this enlightening conversation on how you can leverage these strategies to grow your financial knowledge and participate in business investments like never before. 

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Key takeaways in this episode

1. Discussion on Investment Vehicles

– Explanation of Exchange Traded Funds (ETFs)

  – Role in diversification and tax planning benefits

– Contrast between ETFs and hedge funds

   – Potential for better returns through diversified investments

2.  Bob Elliott and the mission of Unlimited

– Founding of Unlimited in 2022

  – Launch of HFND ETF with an emphasis on agile strategy for lower cost and better liquidity

– Unlimited’s Approach and Strategy

  – Critique of traditional hedge fund model (2% management fee and 20% profit share)

  – Application of low-cost diversified indexing strategies to hedge funds

– Explanation of technology usage

  – Tracking of hedge fund strategies

  – Offering lower-cost investment products

  – Agile response to market changes

– Balancing private investments with public market strategies

  – Importance for institutional and individual investors

3. Investment Accessibility for Main Street Investors

– Slow adoption of crowdfunding investing

  – Efforts to raise awareness and the potential benefits for average individuals

– Accessibility of investment opportunities for ordinary investors and the need for greater awareness and education to grow financial knowledge

4. Advantages of Replication Strategy and ETFs

– Replication strategy

  – Flexibility in shifting between hedge fund styles

  – Avoidance of being locked into specific managers

– Comparison to Kirkland Signature products

  – Similar returns to brand-name hedge funds

  – Lower costs and better tax efficiency

– ETF benefits

  – Tax-efficient rebalancing within the fund

  – Growth in actively managed ETFs due to regulatory changes

  – Limited market awareness and utilization

– Growth potential of actively managed ETFs

  – Investors’ awareness of tax efficiency and flexibility benefits

Bio: Bob Elliott, a seasoned financial expert, spent nearly 15 years in the hedge fund industry. Throughout his career, he observed that traditional hedge fund investments, particularly those following the “2 and 20” compensation scheme, often yielded substantial returns before fees but seldom left investors significantly better off due to high costs. Driven by a vision to democratize these investment strategies, Bob founded Unlimited. The mission behind Unlimited is to adopt the[…]