Money For the Rest of Us Contrarian Investing with GMO's Ben Inker - FEG Insight Bridge
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Feb 5, 2025 Ben Inker, Co-head of asset allocation at GMO, shares his insights on contrarian investing, drawing from his experiences influenced by mentors like Jeremy Grantham. He and Greg Dowling, CIO at FEG Investment Advisors, delve into the significance of deep value stocks in today's market. They discuss the challenges posed by the rise of passive investing and the concentration risks in large-cap tech stocks. Together, they explore emerging opportunities in underappreciated sectors, like Japanese small caps, offering valuable perspectives for savvy investors.
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Inker's Unintentional Hiring
- Ben Inker was initially rejected by GMO due to lack of experience.
- David Swenson, his advisor, convinced GMO to hire him, even guaranteeing another job if it didn't work out.
Grantham's Speech
- Jeremy Grantham once forgot his place mid-speech at a client conference, then continued seamlessly.
- This taught Inker that public speaking isn't about rote memorization, but connection.
Decomposing Returns
- Decompose asset returns into underlying drivers to understand persistence and potential reversals.
- This helps determine which return components are likely to continue, reverse, or are random.
