Exploring the challenges of standing out in fields like sports and investing due to the convergence of skill levels, discussing the rise of indexing in the investment market, proposing a new evaluation approach for active management, and emphasizing the importance of understanding different markets and decision-making biases for successful investing strategies.
Michael Mauboussin currently is the Director of Research at BlueMountain Capital, a multi-billion dollar hedge fund and asset manager. He spent the majority of his professional career thinking and writing about decision making, behavior and complex systems, with long stints at Credit Suisse and nearly a decade alongside Bill Miller at Legg Mason. Michael has been an Adjust Professor at Columbia Business School for 24 years.
Our conversation covers Michael’s early career, the paradox of skill, academic research more favorable to active management, decision-making, optimal size and composition of teams, unsettling features in the market, data analysis in sports, career risk, the Santa Fe Institute, and Michael’s new research on the horizon.
Every time I speak to Michael I come away thinking better and feeling smarter, and this time was no exception.
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