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Constructing an Intangible Asset Based Value Strategy with Kai Wu

Excess Returns

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How Do You Think About Network Effects?

We use page rank, which is like a algorithm that Google uses for ranking websites. It's all about the backlinks and it's a close form solution. And then of course, on the education side, yeah, what we do is we actually find that firms that hire more, you know, PhDs, and even better PhDs from like your top program. As a percentage of like market cap, right? We have a higher intensity of PhDs, let's say, tend to actually outperform adjustments for factors. The result is that when you are able to get the best people working for you and keep them happy, that your stock does tend to do better all else.

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