Capital Allocators – Inside the Institutional Investment Industry Paul Marshall – 10 ½ Lessons from 23 years at Marshall Wace (Capital Allocators, EP.157)
Sep 21, 2020
Paul Marshall, co-founder and chairman of Marshall Wace, Europe's largest hedge fund, shares insights from his 23 years in investment. He delves into the evolution of his firm, the blend of fundamental and quantitative strategies, and the importance of adaptability in the changing financial landscape. Marshall discusses measuring skill in investment performance and the complexities of short selling. He also touches on the interplay between human intuition and technology in investing while reflecting on family success with Mumford & Sons and the lessons learned from past mistakes.
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Early Investing Interest
- Paul Marshall's interest in investing began during his traineeship at Lloyds Bank in Zurich.
- Early mentors at Mercury Asset Management gave him portfolio management responsibilities within months.
Investment Philosophy
- Paul Marshall seeks companies with long-term value unappreciated by the market, defined as the sum of future cash flows.
- He combines this with identifying catalysts that draw attention to the undervaluation.
Marshall Wace Inception
- Ian Wace proposed starting a hedge fund during a rare lunch meeting with Paul Marshall in 1997.
- Marshall, initially considering a long-only business, agreed after several months of discussion.