GMO’s Warren Chiang joins us for a deep dive into the art and science of systematic value investing. In this episode, Warren shares how his team has refined traditional value investing to adapt to an intangible-heavy world, the structural reasons deep value is historically cheap today, and how top-down insights from GMO’s asset allocation group are implemented in practice. We also explore how ESG, momentum, macro, and geopolitical shifts—including the China decoupling—are integrated into portfolio construction, and what investors can learn from GMO’s global perspective on valuations.
Topics Covered:
Why GMO didn’t abandon value—it improved it
The difference between "value" and "valuation"
How restating financial statements improves valuation accuracy
GMO’s two-step top-down and bottom-up ETF strategy
The deep value opportunity: why it’s never been cheaper
How GMO incorporates quality in a forward-looking way
Why momentum and macro are excluded from some strategies
How ESG is treated as a portfolio risk—not virtue signaling
The China supply chain shift and the Beyond China strategy
Passive investing’s long-term impact on price discovery
Managing risk, constraints, and position sizing in quant portfolios
Whether today’s market mirrors the dot-com bubble
What’s driving valuation gaps across global markets
