Orion's The Weighing Machine

As Chief Investment Officer of Avantis Investors®, Eduardo is responsible for directing the research, design and implementation of our investment strategies, providing oversight of the investment team and the firm's marketing initiatives, and interacting with clients. Prior to Avantis Investors' establishment in 2019, Eduardo was Co-Chief Executive Officer, Co-Chief Investment Officer and Director at Dimensional Fund Advisors LP ("DFA") until 2017. While at DFA, Eduardo provided oversight across the investment, client service, marketing, and operational functions of DFA and oversaw their day to day operations, directed the engineering and execution of investment portfolios and was involved in the design, development and delivery of research that informed the firm's investment approach as well as its application through portfolio management and trading. Dr. Repetto earned a Ph.D. degree in Aeronautics from the California Institute of Technology, an MSc degree in Engineering from Brown University, and a Diploma de Honor in Civil Engineering from the Universidad de Buenos Aires. Eduardo is a Trustee of the California Institute of Technology. He is the recipient of the William F. Ballhaus Prize from the California Institute of Technology for outstanding Doctoral Dissertation in Aeronautics and the Ernest E. Sechler Memorial Award for his teaching and research efforts. Key Takeaways * [02:52] - Learn more about Eduardo’s diverse professional background and how his engineering background informs his work in finance today. * [04:48] - What is unique about the Avantis investment philosophy and what does that mean for their advisors and investors? * [06:48] - Avantis’ Investment Solutions are designed to capture the benefits of indexing while simultaneously focusing on segments of the market that are likely to outperform. How does this work exactly? * [10:32] - Avantis recently published an article entitled “What is Value?” What are some of the big takeaways and how does their firm define value? * [12:20] - What are some of the key drivers in the ETF industry’s continued growth? * [15:50] - What are some of the latest trends and developments shaping the ETF market and which areas of the ETF market are experiencing the highest growth? * [18:37] - Which strategies in the Avantis product line are showing the best growth and why is that? * [20:54] - What strategies at Avantis may help advisors build more resilient portfolios? * [22:16] - What are some best practices for constructing resilient ETF portfolios? * [26:55] - How does Avantis set themselves apart in their client services and communication? * [29:00] - What is currently Eduardo’s favorite investment idea? Quotes [05:45] - “[Avantis formed]...in order to bring science, data and technology to analyze securities in a very very efficient way with low labor costs…We can provide portfolios that are very well diversified [with a] very low expense ratio and where the securities are analyzed on a daily basis." ~ Eduardo Repetto [https://www.linkedin.com/in/eduardo-repetto-653231155/] [111:23] - “For us, value is companies that are traded with a very very big discount embedded in their price. In otherwards, companies that have a good balance sheet, good cash flows, but the price is low." ~ Eduardo Repetto [https://www.linkedin.com/in/eduardo-repetto-653231155/] Links * Eduardo Repetto on LinkedIn [https://www.linkedin.com/in/eduardo-repetto-653231155/] * Avantis Investors [https://www.avantisinvestors.com/] * “Can’t Hold Us (feat. Ray Dalton)” by Macklemore & Ryan Lewis [https://open.spotify.com/track/22skzmqfdWrjJylampe0kt?si=6cc4703f63894c9d] Connect with Us * Meet Rusty Vanneman, Orion’s Chief Investment Officer [https://orion.com/rusty-vanneman] * Check Out All of Orion’s Podcasts [https://orion.com/resources-search?resource_type=podcasts] * Power Your Growth with Orion [https://orion.com/] Disclosure(s) ~ Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor. Wealth Management services are offered by Orion Portfolio Solutions, LLC d/b/a Brinker Capital Investments a registered investment advisor. Orion Portfolio Solutions, LLC is a wholly owned subsidiary of Orion Advisor Solutions, Inc. (“Orion”) Compliance Code: 0726-OPS-3/25/2024

This week, Rusty is joined by Josh Flade from Orion to discuss diversifying asset classes. Joshua is the Deputy Chief Investment Officer of Orion OCIO where he chairs the investment committee and oversees the firm’s four investment verticals: Public Equities, Fixed Income, ETF/Mutual Fund Models, and Private Investments. Previously, Joshua specialized in Fixed Income with 12+ years of experience and co-managed TownSquare Capital’s Fixed Income strategies as well as served as the vice-chair of the firm’s Investment Committee. Prior to TownSquare Capital, Joshua was a Senior Analyst/Associate PM within the Fixed Income Team at Ensign Peak Advisors with global coverage of Financial Institutions, REITs, and Healthcare industries. Prior to working at Ensign Peak Advisors, Joshua was an Associate within the Credit Research Group at Goldman Sachs with coverage of Central Counterparties (CCPs), Financial Institutions, and Oil and Gas industries in Central Eastern Europe, the Middle East, and Africa. Joshua currently volunteers as the Chair of Programming for the CFA Society Salt Lake and previously served as the President of the CFA Society Salt Lake and President of the Salt Lake Chapter of the BYU Management Society. Joshua is a CFA charterholder and graduated from Brigham Young University with a double major in Finance and Russian. He is also licensed in series 65. Key Takeaways * [02:40] - Joshua’s professional background and what his current roles at Orion are. * [05:10] - Who does Orion Fixed Income  serve and why do they end up going with Orion over the alternatives? * [06:44] - More about Joshua’s fantastic team at Orion. * [07:54] - When it comes to Fixed Income, a lot of people like to use Mutual Funds or ETFs but some people prefer separate accounts – what are the pros and cons of each? * [10:54] - Are exits on SMA strategies more challenging than those utilizing ETFs or Mutual Funds? * [11:39] - What is Joshua’s current assessment of the Fixed Income markets? * [13:37] - How do you explain what the yield curve is, why is it important to follow it and how does it impact Joshua’s decision making? * [17:41] - What are the differences between liquid alts and illiquid alts and who might use each? * [19:28] - What alternative investments are particularly attractive to Josh at this moment? * [21:07] - How does Joshua define global credit and what are some of his favorite ideas in that space right now? * [23:57] - How to size your position in diversifying assets within your portfolio. * [25:30] - Joshua’s favorite overall investment idea in the current market environment. Quotes [15:54] - “Historically speaking, in this part of the interest rate cycle, what has performed well has been moving up in credit quality and adding some duration.” ~ Josh Flade [24:06] - "It’s…not just the destination that matters, it’s also [about] the journey and the experience for the investor. By using diversified asset classes, you are helping smooth out the journey instead of being so focused on the destination. So, if you can get a similar expected return, in the end, but have a much smoother experience for your investors, your investors are going to be more likely to stay invested. ” ~ Josh Flade Links * “Thrift Shop” by Macklemore [https://open.spotify.com/track/1CmUZGtH29Kx36C1Hleqlz?si=3f20a550c28044ee] (Explicit) Connect with Us * Meet Rusty Vanneman, Orion’s Chief Investment Officer [https://orion.com/rusty-vanneman] * Check Out All of Orion’s Podcasts [https://orion.com/resources-search?resource_type=podcasts] * Power Your Growth with Orion [https://orion.com/] Disclosure(s) ~ OCIO services offered through TownSquare Capital, LLC, an Orion Company, a Registered Investment Advisor. TownSquare Capital, LLC, is an affiliated company of Orion Portfolio Solutions, LLC through their parent company, Orion Advisor Solutions, Inc. Compliance Code: 0723-OPS-3/25/2024

This week, Rusty and Robyn are joined by Frank Nickel and Tom LaBarbera from Orion Portfolio Solutions to discuss Direct Indexing. Frank is an experienced investment professional known for his expertise in portfolio management and a history of contributing positively to performance outcomes.. He believes that a rigorously designed, flexible and robust investment process can add value by exploiting market opportunities. Thomas LaBarbera is a Quantitative Portfolio Manager at Orion who manages 23 SMA strategies within Beta, Factor and Thematic Portfolios for qualified and non qualified assets. In addition, he works alongside marketing and sales to enhance distribution channels and raise AUM.  Key Takeaways * [03:20] - The guests’ professional backgrounds and what they are doing in their current positions. * [04:36] - What is quantitative investing and what are some arguments for why it is an effective way to manage portfolios? * [06:35] - How do Frank and Tom define, measure and manage risk? * [09:25] - What do most people get wrong about, or not appreciate about, risk? * [11:30] - How exactly would they define Direct Indexing? * [12:42] - How much is Direct Indexing expected to grow? * [14:25] - What are the arguments for why certain clients would want customization and why others don’t want any customization? * [15:45] - Where does the “Disciplined Equity” product line at Orion align with Direct Indexing and how does it differ? * [16:50] - How “actively” are they working on the “Disciplined Equity” strategies? * [19:02] - What new strategies are they currently working on? * [20:56] - How does their team produce and vet new ideas before introducing them? * [22:22] - Where do  they think the financial services industry is headed next? * [23:41] - How might AI impact the financial services profession? * [24:36] - What is currently their favorite investment idea? Quotes [19:10] - "We recently launched two new strategies. The first came up over the summer, and it was an Artificial Intelligence strategy. With all of our strategies that we run, how we get to them is, we take demand from the field…The most recent strategy we launched is called ‘Agressive Equity,’ and again that’s trying to provide a very aggressive profile. We’re looking at…companies with really high growth rates…and that came from, again, from demand from a very specific client that was looking to use that strategy in conjunction with a fundamental active manager.  ” ~ Frank Nickel [https://www.linkedin.com/in/frank-h-nickel-iii-4a2472b1/] [24:36] - "I love Small Cap. I was a Small Cap manager for 15 years, [and] I think for the last 10 it has been extremely undervalued. I think there are a lot of areas in the market that are undervalued, and they are not undervalued because they aren’t appreciated, I think tech has taken all of the air out of the room…This year could be a small cap rally if rates are reduced, but that’s dependent on rates and you can’t predict that.” ~ Tom LaBarbera [https://www.linkedin.com/in/thomas-labarbera-jr-cfa-cpcu-9174091/] Links * “Bad to the Bone” by George Thorogood [https://open.spotify.com/track/6s0NHplywwr1IjnQpUpWJk?si=c14e56309fee41f0] * “Live Like You Were Dying” by Tim McGraw [https://open.spotify.com/track/7B1QliUMZv7gSTUGAfMRRD?si=a49d50ff6fa64cfb] Connect with Us * Meet Rusty Vanneman, Orion’s Chief Investment Officer [https://orion.com/rusty-vanneman] * Check Out All of Orion’s Podcasts [https://orion.com/resources-search?resource_type=podcasts] * Power Your Growth with Orion [https://orion.com/] Disclosure(s) Custom Indexing offered through Orion Portfolio Solutions, LLC a registered investment advisor. Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor. Wealth Management services are offered by Orion Portfolio Solutions, LLC d/b/a Brinker Capital Investments a registered investment advisor. Orion Portfolio Solutions, LLC is a wholly owned subsidiary of Orion Advisor Solutions, Inc. (“Orion”) Compliance Code: 0613-OPS-3/11/2024

Chris King is the founder and CEO of Eaglebrook Advisors. Eaglebrook is a crypto investment platform that provides RIAs with direct access to bitcoin and digital assets. The firm operates one of the largest SMA Platforms in the crypto market. Eaglebrook's investment platform offers access to tax optimized Bitcoin and Ethereum separately managed accounts (SMAs) and third-party investment manager strategies held at an institutional qualified custodian. Eaglebrook is an SEC registered investment advisor that works with over 70 RIAs and has over 700 financial advisors using Eaglebrook’s Platform. The company is backed by leading wealth management executives and financial institutions including Castle Island Ventures, Brewer Lane Ventures and Franklin Templeton. Key Takeaways * [03:20] - Chris’ professional background and what drew him to digital assets specifically? * [06:02] - What really drives Eaglebrook’s investment philosophy? * [08:08] - What is the strategic, long term reason to own crypto? * [12:40] - What is the investment thesis for Ethereum in particular? * [14:30] - Chris’ shorter term, tactical outlook for Bitcoin. * [19:54] - Why does Bitcoin halving take place and why is it so significant? * [23:30] - Chris’ thoughts on the Bitcoin market cycles. * [26:20] - How large might the market opportunity be for Bitcoin ETFs? * [30:02] - Why are a lot of advisors  still choosing crypto SMAs over ETFs and what are the best use cases for each of these investment vehicles? * [37:51] - What is the typical allocation to crypto and how has that changed in recent years, if at all? * [39:08] - Are there any salient differences in what retail and institutional investors are doing with their Bitcoin allocations? * [41:11] - Resource recommendations for those wanting to learn more about digital assets. * [42:56] - Chris’ counsel for those who think that crypto is too volatile to invest in. * [45:42] - What is currently Chris’ favorite investment idea? Quote [12:39] - “Moving on to the investment thesis for Ethereum – it is also an internet protocol, like Bitcoin, but it allows internet businesses to build applications on top of it. The analogy that I like to give is that Ethereum is like HTML. HTML is the internet protocol that companies like Amazon and Facebook built their businesses on top of." ~ Chris King [https://www.linkedin.com/in/christopherking7/] Links * Chris King on LinkedIn [https://www.linkedin.com/in/christopherking7/] * Eaglebrook on LinkedIn [https://www.linkedin.com/company/eaglebrook-crypto/] * Eaglebrook [https://eaglebrook.com/] * “No Rain” by Blind Melon [https://open.spotify.com/track/6txWz9UapYHVxEd7dDIHXT?si=a55dc89afd734e9d] Connect with Us * Meet Rusty Vanneman, Orion’s Chief Investment Officer [https://orion.com/rusty-vanneman] * Check Out All of Orion’s Podcasts [https://orion.com/resources-search?resource_type=podcasts] * Power Your Growth with Orion [https://orion.com/] Disclosure(s) ~ Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor. Wealth Management services are offered by Orion Portfolio Solutions, LLC d/b/a Brinker Capital Investments a registered investment advisor. Brinker Capital Investments and Orion Portfolio Solutions, LLC are both wholly owned subsidiaries of Orion Advisor Solutions, Inc. (“Orion”). Compliance Code: 0548-OPS-3/5/2024

Today, Rusty and Robyn are joined by Nate Conrad, Head of LifeX at Stone Ridge. Nate formerly served as the Head of Markets at Stone Ridge and as the President of NYDIG. Prior to joining Stone Ridge in 2016, Nate worked at Goldman Sachs as a vice president in the Interest Rates Trading business. Nate received his BSE in Computer Information Science from the University of Pennsylvania. Key Takeaways * [02:53] - Nate’s professional background and career highlights. * [04:18] - What differentiates Stone Ridge Asset Management as a firm? * [06:38] - How does LifeX work and how might it be a game changer for financial advisors and investors? * [08:30] - What is the concept of “longevity pooling” and how does it work to improve retirement outcomes? * [12:48] - What are some of the unique implementations or use cases for LifeX? * [15:57] - How might the aforementioned use cases drive higher investor confidence and better investor behavior? * [17:40] - Who is LifeX most appropriate for and who might it not be appropriate for? * [19:25] - When should an investor use LifeX and when should they use an annuity instead? * [21:20] - What are the pros and cons of using LifeX vs. annuities? * [24:20] - What are some of the most common investor concerns or questions that they get about LifeX? * [26:55] - The tax treatment of LifeX distributions. * [30:15] - How has LifeX been affected by falling interest rates? * [34:33] - Rules of thumb for sizing the position of LifeX in one's portfolio. * [36:08] - How can investors and advisors get access to these mutual funds? * [37:15] - Nate’s favorite investment idea currently. Quotes [08:28] - "So, longevity pooling…[is] this idea that you take a bunch of people, you pool them together…each individual in the pool, they don’t know how long they are going to live…but if we pool a bunch of people together of the same age and gender, our ability to predict the lifespan of that group, on average, is incredibly precise. " ~ Nate Conrad [https://www.linkedin.com/in/nate-conrad-41b0b4173/] [20:48] - "If you look back to…the adoption of index funds over time, it took about 50 years from, you know, the birth of the ideas behind index funds to the first index fund hitting a billion dollars. I hope we’ll go faster than 50 years and…really kind of evolving the way we approach retirement in our industry and we’re trying to do our part to help it along. " ~ Nate Conrad [https://www.linkedin.com/in/nate-conrad-41b0b4173/] Links * Nate Conrad on LinkedIn [https://www.linkedin.com/in/nate-conrad-41b0b4173/] * “Under Pressure” by Queen [https://open.spotify.com/track/2fuCquhmrzHpu5xcA1ci9x?si=96711c2265b54c2b] * Wade Pfau White Paper [https://retireone.com/wp-content/uploads/2024/01/20210820_EFLS_A033_UnbundlingManagingSOR.pdf] * Stone Ridge on LinkedIn [https://www.linkedin.com/company/stoneridgeam/] * LifeX Funds [https://lifexfunds.com/] * Stone Ridge [https://www.stoneridgeam.com/] Connect with Us * Meet Rusty Vanneman, Orion’s Chief Investment Officer [https://orion.com/rusty-vanneman] * Check Out All of Orion’s Podcasts [https://orion.com/resources-search?resource_type=podcasts] * Power Your Growth with Orion [https://orion.com/] Compliance Code: 0217-OPS-1/29/2024 Disclosure(s) Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor. The LifeX Funds are not annuities or other types of insurance contracts, and the distributions provided by the LifeX Funds are not guaranteed or otherwise backed by an insurance company or by any third party.  The investment objective of the LifeX Funds is to achieve income and a high level of reliable monthly distributions while maintaining the safety of the principal amount of each fund’s investments. For more information about LifeX, please visit www.lifexfunds.com [http://www.lifexfunds.com/].  The LifeX Funds are sold to persons of a single gender who were born in a particular calendar year specified in the relevant prospectus. Before making an investment/allocation decision, investors should (i) consider the suitability of this investment with respect to their investment objective and individual situation and (ii) consider factors such as their net worth, income, age and risk tolerance. Investment should be avoided by those with very serious or life-threatening health problems. You should consider the investment objectives, risks and charges and expenses of the LifeX Funds carefully before investing; the prospectuses contain this and other information. Prospectuses for the LifeX Funds may be obtained by calling 855-609-3680. Alternatively, you may click the links below:   LifeX Income Funds: here. [https://www.lifexfunds.com/local/lifex-income-open-end-funds.pdf]   LifeX Inflation-Protected Income Funds: here. [https://www.lifexfunds.com/local/lifex-inflation-protected-income-open-end-funds.pdf]   Investing involves risks. Principal loss is possible.  The LifeX Funds are distributed by Foreside Global Services, LLC.  Distribution rates discussed herein are based on estimated initial purchase prices in the funds’ prospectuses as revised January 10, 2024.