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In the Advisor Wars podcast, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) tackle one of the most critical trends facing...
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In the Advisor Wars podcast, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) tackle one of the most critical trends facing financial advisors today: alternative investments.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
Listeners can download the new White Paper by Obsidian CIO, here:
How to Scale an RIA to $1 Billion and Beyond
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
show less
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
Listeners can download the new White Paper by Obsidian CIO, here:
How to Scale an RIA to $1 Billion and Beyond
—
IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
Episodes & Posts
Episodes
Posts
15 SEP 2026 · Advisor Wars: Goals, Collaboration, and the $15 Million Exemption: An Advisor's Guide to Estate Planning
In this episode of Advisor Wars, sponsored by Obsidian CIO, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) launch a new series examining the role of estate planning in the advisory profession.
Joined by special guest Bob Keebler, a partner at Keebler & Associates and past chairman of the AICPA Advanced Estate Planning Conference, this episode unpacks how the 2025 tax law's newly permanent $15 million federal exemption reshapes planning for affluent clients and why the advisors who add the most value are the ones who master goals and coordination, not just the tax code.
The conversation ranges from Roth conversion pitfalls to inherited IRA disasters to the growing threat of AI-enabled fraud targeting aging clients and why "goals and collaboration," not clever tax techniques, may be what actually separate good outcomes from costly ones.
Financial Advisors can discover how to:
Build the Plan Goals-First - Learn Keebler's simple two-word answer for what separates the best outcomes: goals and collaboration and why advisors who let clients write their goals down before looping in the attorney get dramatically better results.
Master the New Exemption Landscape - Understand why a permanent $15 million exemption doesn't eliminate the need for trust planning, and how leaving assets outright to a single child can trigger the very estate tax the exemption was meant to avoid.
Separate Core Capital From Excess Capital - Learn the foundational financial-planning question Keebler asks before any gifting strategy: what does the client actually need to live on, and what's truly excess capital they can afford to give away.
Avoid the Inherited IRA and Beneficiary Traps - Hear why coordinating beneficiary forms across old and new accounts is the single most common and costly mistake advisors and clients make, especially under the SECURE Act's 10-year rule.
Know AI's Real Role (and Its Real Limits) - Keebler explains why AI's "IQ is high but its EQ is low," where generative AI can safely support estate planning, and how advisors should be coaching aging clients on AI-powered scams before they become victims.
Recommend the Right Trustees and Coordinate the Right Team - Get Keebler's take on when a trust company belongs in the picture, when it's a family member or lawyer, and how to choose an estate attorney who collaborates rather than creates friction.
Bob Keebler can be contacted through www.keeblerandassociates.com.
Discover a tech-enabled OCIO for RIAs at www.Obsidiancio.com.
You can find Advisor Wars on Apple Podcasts, Spotify, and YouTube, and connect with the hosts on LinkedIn.
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
12 AUG 2026 · In this episode of Advisor Wars, sponsored by Obsidian CIO, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) continue their series on tax planning in the advisory profession with a deep dive into direct indexing.
They are joined by Dave Nadig, President and Director of Research at ETF.com, who cuts through a decade of hype and skepticism to explain what direct indexing actually is, who it works for, and where it falls short.
Nadig traces the arc from the 2020 acquisition spree, Schwab/Motif, Goldman/Folio, Morgan Stanley/Eaton Vance Parametric, BlackRock/Aperio, and more, to today's roughly $1.5 trillion market, and explains why direct indexing never became the "ETF killer" some predicted, but has quietly become a durable, appropriately-sized part of the advisor toolkit.
Key Takeaways
• What it actually is — Direct indexing is a separately managed account with tax-aware customization layered on top, built to solve two problems: (1) single-stock exclusions and concentrated-position management, and (2) personalized tax-loss harvesting.
• The acquisition scorecard — Not every acquisition in the 2020 buying spree was equal — some (Morgan Stanley/Parametric, Franklin Templeton/Canvas, BlackRock/Aperio) were clear wins; others (Schwab/Motif, Goldman/Folio) were arguably about something else entirely.
• Tax alpha has a shelf life — "Tax alpha" claims of 1–5% a year are real but not permanent — losses to harvest eventually run out (often in years three to five), after which the portfolio behaves like a slightly more expensive index fund.
• Sizing and fit matter — Direct indexing tends to make sense above roughly $1–2 million in a single equity portfolio, layered on advisors with a real relationship to a tax/CPA practice, not as a product to push across an entire client book.
• Real risks to diligence — Watch for the "tax trap" (running out of losses to harvest), statement complexity ("phone book" account statements), misallocation into tax-advantaged accounts, and genuine tracking error if a platform is over-customized.
• Long/short is the frontier and the bottleneck — Long/short direct indexing can generate more durable tax alpha (3–4%+) but carries real capital and counterparty constraints, some custodians have already begun gating new accounts.
• Know the alternatives — Direct indexing, exchange funds, and Section 351 exchanges solve different problems for concentrated positions, each with distinct tradeoffs around lockups, diversification, and tax basis.
As Dave Nadig puts it, direct indexing "is a sharp tool in the drawer” powerful for the right client, but not a solution every advisor or every client needs.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to catch every episode in this series on tax planning, including upcoming episodes on operational playbooks, client conversations, and building repeatable tax-aware processes.
To learn more about Obsidian CIO, visit www.obsidiancio.com.
IMPORTANT DISCLOSURE
Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing. The podcast does not provide investment advice. Investment advice is offered only to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
24 JUN 2026 · In this episode of Advisor Wars, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) continue their series on the role of tax planning in the advisory profession.
This time they tackle one of the most talked-about yet least understood tools available to RIAs: Section 351 exchange ETFs and related tax-efficient diversification strategies.
Joining them is Meb Faber, co-founder and Chief Investment Officer of Cambria Investment Management and author of multiple books on investing. Faber's firm has run several Section 351 launches and is one of the few opening these exchanges to outside advisors and investors through open syndication. Concentrated and highly appreciated stock positions are one of the most common, and most expensive, planning challenges for wealthy clients.
After a 17-year bull market, many investors want to diversify but fear the tax bill, and the solutions go far beyond simply selling and paying the tax. Advisors who understand the full toolkit, including Section 351 ETF contributions, exchange funds, direct indexing, and long/short overlays, will be positioned to deliver far greater after-tax outcomes for their clients.
Key takeaways for advisors:
Tax alpha is the easiest alpha: Faber argues the "old, boring alpha" of fees and taxes is far simpler to capture than chasing market calls. Choosing the right structure can be worth 1.5% or more per year in a taxable account.
The ETF structure is the engine: The creation/redemption mechanism lets ETFs rebalance and defer gains rather than passing them to shareholders, the key reason ETFs are taking market share from higher-cost, less tax-efficient mutual funds.
Section 351, explained simply: A 100-year-old provision in the tax code now paired with the ETF wrapper. Contribute a concentrated or highly appreciated portfolio, receive a diversified ETF in return, and defer the gain. Think of it as a 1031 exchange for stocks. It's a deferral, not a tax wash.
Know the rules before you pitch it: The top position can't exceed 25% of the contributed portfolio, and the top five can't exceed 50%, so you generally need twelve or more stocks, or a diversified ETF that looks through to its holdings. Only liquid stocks and ETFs qualify, not bonds, crypto, options, mutual funds, or micro-caps.
Cost is the differentiator: Traditional exchange funds under Section 721 require accreditation, a seven-year hold, and fees around 1% to 1.5%. Faber's Section 351 launches carry a 0.25% expense ratio with no lockup, and cost basis carries over from the contributed positions.
A real opportunity for independent advisors: Over $20 billion has flowed into these structures in just a couple of years, with strong adoption among family offices. Many legacy incumbents can't or won't offer them, creating an opening for RIAs and individual investors.
It doesn't have to be all-or-nothing: Match the solution to the client's full situation. Younger clients in low brackets may prefer to harvest gains now, and partial moves often make more sense than wholesale diversification. As Faber jokes, the oldest capital-gains solution of all is a bear market.
Stick around to the end, where Faber discusses his new book, https://www.amazon.com/Investing-America-Rise-250-Year-Market/dp/1544551770, out July 4th on Amazon and other major book retailers.
To learn more about Cambria Investment Management or connect with Meb Faber, visit https://www.cambriafunds.com/.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to catch every episode in this series on tax planning, including upcoming episodes on direct indexing and other tax-aware strategies for the mass affluent.
To learn more about Obsidian CIO or connect with Joe Halpern, visit http://www.obsidiancio.com.
IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing. The podcast does not provide investment advice. Investment advice is offered only to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
18 MAY 2026 · In this episode of Advisor Wars, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) continue their series on the role of tax planning in the advisory profession.
This time they go deep on one of the more sophisticated and misunderstood tools available to RIAs: long/short overlay strategies for concentrated stock positions.
Joining them is Brent Sullivan, founder of https://www.taxalphainsider.com/ and a leading consultant to family offices and ultra-high-net-worth individuals on advanced tax management. Brent brings a rare engineering mindset to tax strategy and his precision shows.
Concentrated stock positions are one of the most common, and most expensive, planning challenges for wealthy clients. The stakes are enormous, and the solutions go far beyond simply selling and paying the tax.
Advisors who understand the full toolkit, including long/short overlays, exchange funds, Section 351 ETF contributions, and direct indexing, will be positioned to deliver far greater after-tax outcomes for their clients.
Key takeaways for advisors:
- Long/short is an alpha strategy first: The tax benefits are real, but they're the gravy, not the potato. Advisors who lead with tax and ignore alpha generation are missing the mark entirely.
- The fishing net analogy: Direct indexing gives you $1 of harvesting surface for every $1 invested. Long/short can expand that to $3, $5, or more, dramatically widening the opportunity set for tax loss harvesting.
- Short positions are a different beast: Unlimited risk, squeeze dynamics, lender recalls, and asymmetric custodian power make short exposure unlike anything in a traditional long-only portfolio. Advisors must understand this before recommending it.
- Manager selection is everything: The RIA's job is rigorous due diligence, on alpha generation, risk management, operational competency, and short-position expertise. Picking the wrong manager is the most common mistake.
- Jurisdiction matters: State tax regimes, like Washington State's unique capital gains structure, can significantly affect whether long/short is the right solution — or whether an exchange fund or options overlay makes more sense.
- Flexibility is the long/short advantage: Unlike exchange funds or Section 351 contributions, long/short is fully customizable at the household level, allowing for liquidity access, tailored sector hedges, and even the ability to maintain some exposure to the concentrated position.
- Costs are real and substantial: Manager fees, financing costs, and trading friction mean that alpha must be present and meaningful — not assumed.
- Know your client's complexity tolerance: Some clients want to understand every layer of the strategy; others want to trust and delegate. The advisor's job is to map the solution to both the financial and psychological profile of the client.
Long/short strategies are growing and as more managers enter the space and custodial lending infrastructure matures, they will become an increasingly important tool for advisors serving high-net-worth clients.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to catch every episode in this series on tax planning, including upcoming episodes on operational playbooks, client conversations, and building repeatable tax-aware processes.
To learn more about Obsidian CIO or connect with Joe Halpern, visit http://www.obsidiancio.com.
IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing. The podcast does not provide investment advice. Investment advice is offered only to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
15 APR 2026 · In this episode of Advisor Wars, sponsored by Obsidian CIO, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) kick off a new series on the role of tax planning in the advisory profession.
Advisors will discover why mastering tax portfolio management may be the single most powerful way for RIAs to separate themselves from commodity advisors.
Tax is one of the two largest lifetime expenses for most clients right alongside housing. Yet many advisors still treat it as an afterthought.
In this episode, Bob and Joe explore why that can no longer be the case, what's changed in the advisory landscape over the last three to five years, and how the convergence of new products and better technology is raising the bar for what clients should expect.
Key takeaways for advisors:
- Tax is not optional: It's one of your client's top two lifetime expenses, treat it that way
- Tax harvesting is table stakes: If you're not offering it, clients should be asking why
- Premium strategies exist: Long/short tax extensions, exchange funds, and direct indexing go well beyond checkbox harvesting
- Start with the basics: Maximizing 401(k) matches, 529s, and HSAs can make a bigger difference than any sophisticated product
- Think in after-tax, after-fee returns: Gross performance is a distraction — net is what matters to clients
- Technology is the great enabler: Advisors who build or partner with the right tech stack will be able to customize at scale in ways that were impossible just a few years ago
- An OCIO can do what internal teams often can't: Deep focus on portfolio-level tax integration, freeing advisors to do what they do best, build client relationships
The advisors who thrive in the next decade won't just manage portfolios. They'll manage tax outcomes. This episode tells you where to start.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to catch every episode in this series on tax planning, including upcoming episodes on operational playbooks, client conversations, and building repeatable tax-aware processes.
To learn more about Obsidian CIO or connect with Joe Halpern, go to www.obsidiancio.com or download their White Paper, https://www.obsidiancio.com/resources/how-to-scale-your-ria/.
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing. The podcast does not provide investment advice. Investment advice is offered only to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
25 MAR 2026 · In this special episode of Advisor Wars sponsored by Obsidian CIO, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) sit down with one of the foremost experts in artificial intelligence, Dr. Alex Wissner-Gross, to explore what AI means for the future of wealth management and the financial advisory profession.
Alex is a director or advisor to multiple AI companies, author of the daily AI newsletter The Innermost Loop, and co-host of the Moonshots podcast with Peter Diamandis. He is also co-author of the forthcoming book Solve Everything.
Over 45 minutes, he delivers a sweeping and often surprising perspective on where AI is taking our economy and specifically what it means for advisors, RIA owners, and their clients.
Whether you are deeply immersed in AI tools today or just beginning to explore what the technology means for your practice, this episode delivers critical context and practical implications that every financial professional needs to understand.
Key takeaways for advisors:
• Lean into AI now: Advisors who wait will fall behind
• Automate your own workflows: Full automation could be one to two years away
• Rethink your value proposition: Relationship management and holistic planning are the most durable advisory functions
• Clients live longer: Prepare clients for a dramatically longer planning horizon as longevity science accelerates
• Outsourcing: Outsourcing investment management (via an OCIO like Obsidian CIO) frees advisors to focus with confidence on their core value proposition.
The future of the profession will not look like the present, the advisors who thrive will be those who adopt and use AI.
Follow Alex’s work by subscribing to https://theinnermostloop.substack.com/, or the https://open.spotify.com/show/5Y1NyT6srGx38f5LINbH6c?_gl=1*1ahh4n*_gcl_au*MTk5NzQyODA5My4xNzc0Mjk1Mjk1 podcast with Peter Diamandis.
Listeners can download the white paper by Obsidian CIO, https://www.obsidiancio.com/resources/how-to-scale-your-ria/.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
10 MAR 2026 · In this episode sponsored by Obsidian CIO, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) go inside a leading multifamily office to show what a fully committed alternatives practice actually looks like in action.
Joined by special guest Scott Welch, CIO and Partner at Certuity, a $4 billion multifamily office serving ultra-high-net-worth families across the country, this episode delivers an unfiltered look at how a seasoned investment professional sources, vets, sizes, and integrates alternative investments into real client portfolios.
Scott’s bottom line for advisors considering alternatives: go all-in, or don’t go at all.
• Understand the Modified Endowment Model — Learn how Certuity adapts institutional investing principles for individual families, balancing global diversification, tax efficiency, and liquidity needs.
• Define Your Alternatives Framework — Why Scott draws a sharp distinction between alternatives (hedge funds and diversifying strategies) and private markets (private equity and private credit) and why that distinction shapes every allocation decision.
• Source and Vet Managers Like an Institutional Investor — Certuity applies a rigorous four-P framework (People, Philosophy, Process, Performance), why it favors deep relationships with fewer managers, and how Alt+ makes institutional minimums accessible to individual clients.
• Size Alternatives to Move the Needle — Understand why a 20–25% allocation is the threshold that actually impacts portfolio performance and how to balance that against each client’s liquidity threshold and cash flow needs.
• Build the Operational Infrastructure — Learn how Certuity handles capital calls, performance reporting, and consolidated K-1s at scale and where AI is beginning to streamline the process.
Listeners can download the white paper by Obsidian CIO, https://www.obsidiancio.com/resources/how-to-scale-your-ria/.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
26 FEB 2026 · In this episode sponsored by Obsidian CIO, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) investigate the forces driving the "alt craze" and why advisors are lagging behind the industry momentum.
Joined by special guest Kendrick Wakeman, a 30-year industry veteran and CEO of WealthTech Strategy Partners, this episode unpacks the massive shift of alternative investments downstream into wealth management—and reveals the substantial gaps that still need to be filled before alternatives truly become mainstream for advisors and their clients.
The conversation explores the technological, educational, and operational barriers preventing advisors from fully capitalizing on alternatives, from subscription processes that desperately need automation to the critical lack of due diligence frameworks and advisor education.
Whether you're exploring alternatives for the first time or struggling with implementation, this episode delivers the strategic insights needed to understand where the industry is headed and what still needs to happen including:
Understand the "Alts2Wealth" Movement - Learn what's really driving the democratization of alternatives and why institutional capital is pushing downstream.
Identify the Critical Infrastructure Gaps - Discover the three key processes: onboarding, subscription, and post-trade management, that must be scaled for alternatives to reach mass adoption.
Recognize the Role of TAMPs and OCIOs - Understand why outsourced platforms are positioned to become the biggest beneficiaries of the alts craze.
Address the Education Deficit - Learn why advisor education remains the single largest human constraint holding back adoption.
Evaluate Due Diligence Challenges - Understand why alternatives lack the standardized data and ratings that exist for public investments—and what needs to change.
Anticipate the Next 5 Years - Get Kendrick's prediction for when the market will be fully deployed and what success looks like when "Alts2Wealth" simply becomes "wealth."
Kendrick Wakeman and WealthTech Strategy Partners’ new White Paper is available here, https://www.wealthtechstrategy.com/post/what-really-needs-to-happen-for-alts2wealth-to-become-mainstream.
Listeners can download the new White Paper by Obsidian CIO, https://www.obsidiancio.com/resources/how-to-scale-your-ria/.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
12 FEB 2026 · In this episode of Advisor Wars, sponsored by Obsidian CIO, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) provide a comprehensive framework for financial advisors seeking to incorporate alternative investments into client portfolios with confidence and competence.
This episode moves beyond theoretical benefits to deliver practical, actionable guidance on the five critical requirements for safely and effectively allocating alternatives. The conversation explores everything from client suitability and portfolio sizing to due diligence frameworks, operational workflows, and client communication strategies that build trust while managing expectations.
Whether you are just beginning to explore alternatives or looking to refine your existing approach, this episode provides the strategic blueprint needed to implement a successful alternatives program that serves your clients' best interests including:
Master Client Suitability - learn how to assess whether alternatives are appropriate for specific clients.
Understand Portfolio Exposure - Discover how to analyze existing client exposures and identify diversification opportunities.
Build a Robust Due Diligence Framework - Gain insights into conducting thorough investment analysis.
Navigate Operational Complexity - Understand the subscription process, ongoing reporting requirements, tax documentation challenges, and the critical importance of platforms like iCapital and CAIS.
Determine Appropriate Sizing - Learn practical guidelines for allocation sizing based on client circumstances.
Navigate Client Communication - Develop effective strategies for explaining illiquidity risks and setting realistic expectations.
Avoid Common Mistakes - Understand the biggest errors advisors make when introducing alternatives.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
Listeners can download the new White Paper by Obsidian CIO, here:
https://www.obsidiancio.com/resources/how-to-scale-your-ria/
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
23 JAN 2026 · Advisor Wars, Episode 2, Beware of (but maybe use) Interval Funds, Sponsored by Obsidian CIO
In this episode of Advisor Wars, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) demystify an investment structure gaining popularity with both investors and advisors: Interval Funds.
This episode provides advisors with an essential framework for understanding both the opportunities and significant risks associated with interval funds, challenging the prevailing narrative that these vehicles offer simple, liquid access to sophisticated alternative strategies.
Unlike mutual funds and ETFs that are limited to 15% illiquid holdings, interval funds can hold 100% illiquid securities. The trade-off? While investors can enter daily, exits are limited to quarterly redemption windows with typical 5% gates on total fund assets.
Understanding this structure is critical for proper client positioning. Key discussion points include:
The underlying asset must align with the interval fund wrapper. Shorter-duration credit strategies work better than venture capital or private equity, where the forced cash drag undermines the strategy's core economics.
If there's any possibility a client might need access to these funds within 12-18 months, interval funds are inappropriate. These vehicles cannot be margined, and redemption queues during stress periods can be lengthy.
Interval funds are one tool among many for accessing alternatives. For qualified purchasers, traditional closed-end vintage funds may offer better performance by eliminating cash drag.
While the operational ease of interval funds—daily subscriptions, quarterly redemptions, ticker-based trading, 1099 reporting—makes them attractive to advisors, this simplicity can mask underlying complexity and risk.
Advisors may be allocating too much to interval funds, seduced by simplicity and the sophisticated alternative narrative.
Related Research
The episode frames interval funds within the broader democratization of alternative investments, referencing recent research including:
JPMorgan 'Eyes on the Market' by Michael Cembalest, https://am.jpmorgan.com/us/en/asset-management/institutional/insights/market-insights/eye-on-the-market/the-deep-end/
Goldman Sachs survey of 1,000 HNW/UHNW investors, https://am.gs.com/en-gb/advisors/insights/report-survey/2025/alternatives-insights-high-net-worth-investors-survey
Listeners can also download the new White Paper by Obsidian CIO, here:
https://www.obsidiancio.com/resources/how-to-scale-your-ria/
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
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IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
In the Advisor Wars podcast, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) tackle one of the most critical trends facing...
show more
In the Advisor Wars podcast, hosts Bob Huebscher (founder of Advisor Perspectives) and Joe Halpern (Managing Partner and CIO of Obsidian CIO) tackle one of the most critical trends facing financial advisors today: alternative investments.
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
Listeners can download the new White Paper by Obsidian CIO, here:
How to Scale an RIA to $1 Billion and Beyond
—
IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
show less
Subscribe to Advisor Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
Listeners can download the new White Paper by Obsidian CIO, here:
How to Scale an RIA to $1 Billion and Beyond
—
IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is only offered to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
Information
| Author | Obsidian CIO |
| Organization | Obsidian CIO |
| Categories | Investing |
| Website | - |
| info@obsidiancio.com |
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