David Kotok speaks with Bloomberg’s Tim Fox and Tom Keene

David was asked, “Where are you within your portfolio: cash, bonds, equities?” David responds, “ Bonds, barbelled, that’s an easy one and we’ve been in that mode for a while and we’re going to stay there. In our Leveraged Volatility, that’s a high-frequency trading strategy, were 100% in cash. In Core US 20% in cash. And in the Diversified US, 10% in cash and they are biased towards domestic, US, small mid cap, and underweighted risk elements in the international trade war sectors."

David is next asked, “Where do you hide in equities? If somebody says I’ve got to be in equities but I’ve got a risk profile like D. Kotok, where do you hide within sectors and ETFs in equities?” David’s response is, “We’re overweight healthcare, were overweight the banking/financial sectors focused in the United States. We’re overweight defense in the industrial sector. And we like transports because Domestic US transport, the ETF, is just on fire and stays that way. There’s a shortage of people. Prices are going to rise, there’s pricing power in transportation, particularly truckers and rails.”

The interview continues with more questions including one about capital gains taxes and if they were indexed to inflation.

This is a Bloomberg podcast.

LISTEN HERE: Bloomberg Audio

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If you like podcasts, check out this one from 2015 featuring David Kotok talking about his background and Camp Kotok with Barry Ritholtz. They also talk about the history of Cumberland Advisors since its founding, and delve into fundamental principles of investing and valuation.

Links here
https://itunes.apple.com/us/podcast/masters-in-business/id730188152?mt=2

And here
http://www.bloomberg.com/podcasts/masters-in-business/