The Long View Mike Pyle: Looking for Uncorrelated Sources of Return
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Oct 14, 2025 Mike Pyle, Managing Director at BlackRock, discusses the intricate dance between policy and economic realities. He delves into how rising tariffs shape growth and inflation while highlighting underestimated U.S. resilience. Pyle explores AI's transformative impact on productivity and the emerging opportunities in widened return dispersion for investors. He argues for the value of hedge funds in navigating macro uncertainty and suggests a careful approach to traditional bond investments, emphasizing the need for diversification in portfolio construction.
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Blend Fundamental Research With Systematic Construction
- Combine deep fundamental research with systematic portfolio construction to improve resilience and returns.
- Pyle advises using systematic optimization to reduce factor and macro risks in concentrated fundamental portfolios.
AI Is Embedded Across Investing And Operations
- BlackRock applies AI across fundamental stock selection, decades-long systematic investing, and internal operations.
- Pyle stresses systematic teams have long used machine-learning techniques well before recent hype.
Rethink Long Bonds As Core Diversifier
- Long-dated government bonds may no longer reliably provide diversification and income going forward.
- Pyle suggests income can be better sourced from high yield, securitized assets, and emerging market debt.