š¤« Founder & CEO of @canopycapital šļø Host of Making Markets šø Formerly Fidelity Fixed Income Portfolio Manager. No investment advice - views my own.
Joined March 2021
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In the early part of a career, the focus is on working as hard as possible to learn, grow, and build skills that a firm values. For me, that began at Fidelity, where I spent 18 years. Walking away wasnāt easy. A close friend gave me a collection of books by Joseph Campbell, and over time, they helped me see that my path wasnāt ending, it was beginning. I felt a calling to build something again from the ground up.Ā
There have been hard days, sacrifices, and even tears, but there has also been a constant sense of gratitude for the opportunity to pursue this work, and a joy in working with a brilliant team.
Starting Canopy was not about chasing money, fame, or power. It was about surrounding myself with people I love working with, tackling a difficult problem, and generating lasting impact. Canopy is that vision in motion.
From signing our first client to executing our first trade, each milestone has been deeply meaningful.Ā Crossing $1,000,000,000.00 in assets under management in under a year is truly remarkable.Ā We are humbled by the trust of the hundreds of advisors who have made this possible.
This milestone represents, more than anything, a starting point for everything we want to build. Our team is energized, building new features, and listening closely to feedback to make Canopy better every single day.
To all of our partners: thank you. None of this happens without your trust and belief in us.
With immense gratitude,
Eric
Eric Golden retweeted
An incredible metaphor for entrepreneurship:
"If you're sailing across the ocean and your goal is to avoid weather and waves, then why the hell are you sailing? You have to embrace that sailing means that you can't control the elements and that there will be good days and bad days and that, whatever comes, you will deal with it because your goal is to eventually get to the other side. You will not be able to control exactly how you get across. That's the game you've decided to be in. If your goal is to make it easier and simpler, then don't get in the f*cking boat."
āTax-loss harvestingāselling a security that fell in price in order to use the loss to offset gains elsewhere in a portfolioāwas a significant opportunity for bond investors in the third quarter.
That is thanks to a rapid rise in yields, as bond prices move inversely to interest rates. Many investors took advantage of that opportunity, particularly in municipal bonds.ā
barrons.com/articles/tax-losā¦
I have had the Apple Duo for 24hrs and absolutely love it. The Duo are my favorite Apple devices combined. iPhone mini for limited distraction and iPad mini for reading, No face unlock stinks but this form factor is perfect.
Eric Golden retweeted
How I Think About Investing in Bonds
"Bond returns tend to track starting bond yields. Expected returns for bonds are higher than theyāve been since Apple launched its first iPhone."
buff.ly/m9ieNLJ
by @awealthofcs
Eric Golden retweeted
I spoke with @DanielJHemel about box spread ETFs, why Treasury might consider them conversion transactions under IRC Ā§1258, and how that might require investors (not the fund) to recharacterize capital gains as ordinary income upon disposition (assuming any challenges from industry fail).
Link in profile for the write-up.
The latest episode of The Albatross podcast is on the same topic. Get it wherever you get podcasts.
āā¦the issue is people are more bullish about the economics caused by the under supply than perhaps their bullishness on the underlying unit economicsā¦ā
I think this recent volatility continues to reflect the misalignment in the product cycle and the capital cycle. The product cycle itself has gotten more complex not simpler due to the continued presence of multiple competing products and the shifting relevance of open and closed models. The capital cycle is adding complexity on the other side of complexity proving two things can be true. The market can be structurally under supplied compute/infra but the capital complexity to finance the build may be over extended and overly complicated. I observe a lot of frustration about this dynamic. If you are super bullish long term this should be great. I think the issue is people are more bullish about the economics caused by the under supply than perhaps their bullishness on the underlying unit economics of the products on the other side of the shortages. The frustration is driven by not getting/keeping a sustained multiple now on the current economics reflexively driven by the supply/demand imbalance. I wont pretend to know whatās going to happen to alleviate supply or not, or what the economics of the models will look like depending on the slope of supply. I just know this kind of uncertainty usually leads to volatility because the market hates uncertainty more than anything. That means being nimble. Just when you think there is a clear trend, something else will change and make you re-think everything you believe today.
Eric Golden retweeted
Isnāt the logical conclusion here that one should dramatically scale down risk now and hide in bonds until the equity risk premia relative to bond yields have normalized (most likely due to lower stock prices)?
Is It Time to Rebalance Your Portfolio?
"The good news is now you donāt need the stock market to knock it out of the park anymore to achieve a decent return in a balanced portfolio. Bonds are finally earning their keep."
buff.ly/8AhRbKi
by @awealthofcs
Eric Golden retweeted
āThe man who can walk away from what he desires, for the sake of what he must become, is a man no one can own.ā
- Epictetus
Eric Golden retweeted
IG SPREADS ARE TOO TIGHT FOR PRIVATE WEALTH!
$LQD trades at 6.20% which is 100 bps wide to comp UST.
But interest from Corp Bonds is fully taxable where as UST interest is state tax exempt.
In the extreme top state tax rate for HNW in NYC is 14.8% so 6.20% * .148 is 92 bps ...
So after tax investor is picking up ONLY 8 BPS for taking credit risk.
Eric Golden retweeted
The man who can walk away from what he desires, for the sake of what he must become, is a man no one can own.
ā Epictetus
The headlines are fixated on the long end of the Treasury curve, but there are many ways to build a fixed income portfolio. We believe Tax-Individualized Investing is the future of fixed income, especially for clients who understand that taxes play a major role in portfolio construction.
We've been fortunate to have Ritholtz Wealth Management as one of Canopy's first clients.
"I believe the best bet for those circumstances is tax-free municipal bonds. Iām a big fan of @canopycapital , which is @Ericgolden version of direct indexing for municipal bonds" - Barry Ritholtz Chairman, CIO @RitholtzWealth
Eric Golden retweeted
T-Bills and Chill? Try Munis & Chill Instead dlvr.it/TVQdHF
If you believed AI was going to kill all humanity in the next few years, how would you live?
I donāt believe there is even a small chance of this but find the people screaming worry and their actions fascinating.
Eric Golden retweeted
This šÆ. With the front end of the curve moving around and inflation running ~3.5%, being active and tax-aware with cash management and fixed income in general makes a lot of sense. @Ericgolden and the team at @canopycapital are doing some very cool, innovative stuff in this space - highly recommend reaching out to them if youāre an advisor š§ š
Eric Golden retweeted
What @MichaelDell and @altcap pulled off with these Invest America accounts is remarkable.
Todayās $250 airdrop from the Dellās is so badass.
Theyāve gotten a lot of kudos, but deserve even more.
Awesome example they are setting.
