Veteran investor and Hedgeye Director of Capital Allocation David Salem shared some thoughtful advice for investment managers when structuring client portfolios. 

 Salem encourages asking clients two threshold questions:

  • What kind of real return would you settle for?
  • What’s your ultimate tolerance for a drawdown? 

“A lot of people in this business say it’s a ridiculous question you can’t pose to clients because they can’t know what their ultimate tolerance is for a drawdown,” Salem explains. “I get that. I’ve been doing this for a very long time.”

“But I still think you need to pose the question because it can catalyze a broader conversation on investing policies. Once they’re put into practice, they really do help asset owners stay the course.” 

Salem shares powerful investing insights in Hedgeye’s Capital Allocation product. For more information or to sign up, email

Salem: Two Important Questions to Ask When Structuring Your Portfolio - TMS Banner