Money Maze Podcast

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn The world of quantitative investing is a varied one, ranging from “statistical arbitrage” funds that seek to exploit miniscule and often fleeting market mispricings, to systematically exploiting timeless return patterns. Dimensional Fund Advisors (DFA) is in the latter camp. Founded by Rex Sinquefield and David Booth - two pioneers of index funds - DFA primarily harnesses “factors” that drive market returns in the long run. Here, Savina Rizova, Global Head of Research at DFA, explores the world of multi-factor investing with the FT’s Robin Wigglesworth.  Savina was recently named as one of 100 Most Influential Women in U.S. Finance by the magazine Barron’s, and was nominated by none other than Robert Merton, a Nobel laureate in economics. Merton described the Bulgarian-born quantitative researcher as a standout in his more than 50 years of working with some of the best quantitative analysts and investors in the field of financial and economic research applied to real-world solutions. In this conversation, Savina helps clarify the often muddied terms surrounding factor investing, and reveals the uncomfortable truth that many of these market-beating signals are nothing more than an artifice of data mining.  Savina also explains why DFA is excited about the opportunities in systematic fixed income investing, and covers the firm’s decision to jump into the ETF industry and build its own in-house “direct indexing” business (it now competes head-to-head with investment giants like Vanguard, BlackRock and Morgan Stanley on this front).  The avid petrol-head also explains why Formula One is an entirely natural interest for any quant, given its combination of technology, data and human skill! The Money Maze Podcast is sponsored by Schroders and Bremont Watches. Schroders is a global investment and wealth manager, with a purpose to provide excellent investment performance to clients, through active investment management. Bremont is an award-winning British company that produces beautifully engineered chronometers, designed to appeal to those who share the appreciation of a beautiful mechanical wristwatch.

Dive into the fascinating realm of quantitative investing as a leading CIO shares insights on the evolution of systematic strategies. Discover how personal journeys shape careers, debunk stereotypes about quants, and explore the intricacies of navigating alpha decay. Learn about the vital role of risk management in boosting returns and the dynamic response of quantitative strategies during market volatility. Anecdotes reveal the blend of innovation and collaboration essential for thriving in the complex world of finance.

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn Leda Braga has earned the nickname “the queen of quants”. After a PhD in engineering from Imperial College London, she spent seven years at JPMorgan as a quant the bank’s derivatives research team. After a stint at a start-up spun out of JPMorgan, the Brazil-born Leda then helped establish one of the industry’s leading systematic trend-following funds at Michael Platt’s BlueCrest.  In the wake of eye-popping financial crisis success - the flagship BlueTrend fund made 43 per cent in 2008 - Leda spun out Systematica into a full-fledged standalone hedge fund group (though she reluctantly retired the Ducati motorbike). As chief executive of Systematica she has ridden through a tough time for trend-surfing systematic funds and solidified Leda’s reputation as a bold-faced name in the quant industry. In this wide-ranging discussion with our guest presenter, the FT’s Robin Wigglesworth, Leda explores everything from gender balance in hedge funds and how “algorithm aversion” is no longer spooking investors to the different forms of trend-following and how quant is the future of the investment management world – whatever the old guard may say. The Money Maze Podcast is sponsored by Schroders and  Bremont Watches. Schroders is a global investment and wealth manager, with a purpose to provide excellent investment performance to clients, through active investment management. Bremont is an award-winning British company that produces beautifully engineered chronometers, designed to appeal to those who share the appreciation of a beautiful mechanical wristwatch.

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn In this episode, we’re in discussion with the Global Head of the Blackstone’s $192 billion Private Wealth Solutions business, Joan Solotar. Joan has thrice been recognised in Barron’s as one of the 100 Most Influential Women in U.S. Finance, and after a background in equity research covering financial services, she joined Blackstone in 2007.   She starts by describing Blackstone’s growth to oversee approximately $880 billion in alternative assets, before explaining their private wealth solutions business. She discusses their drive to “democratise alternatives”, their client base, geographical reach and why they believe we are very early in the adoption of these assets in portfolios. She then breaks down the components of alternatives, with a dive into their real estate expertise, the credit portfolios which have disintermediated portions of bank lending, as well as discussing hedge funds and P.E. She discusses the liquidity trade-offs, why they have developed Blackstone University for clients, before offering some terrific general advice (especially to fathers with daughters!).

To mark two years since the show's inception, we're pleased to present this update of how the podcast is progressing and evolving to further serve our fantastic community.  From the very beginning, we set out to share insightful and engaging conversations with leaders in both the investment and business worlds, backed by high quality research and first-hand experience in finance.  Have a listen to this quick message here to learn about our mission and plans.  Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn  

Billionaire hedge fund manager and philanthropist, Sir Chris Hohn, discusses his journey from immigrant roots to Harvard Business School, his charity work, and his 'say on climate' initiative targeting corporations lacking climate transition plans. He emphasizes the impact of climate change on poverty, child destitution, and the planet, pushing for corporate accountability and emissions disclosure.

To celebrate our two year anniversary, we're resharing some of the most popular episodes of 2021. In this episode, we welcomed Nicolai Tangen onto the show. Nicolai is the CEO of Norges Bank Investment Management (NBIM), which administers Norway's sovereign wealth fund, the world's largest. This episode was originally released in June 2021.  In this podcast, we have an enlightening conversation with Nicolai Tangen, CEO of the Norwegian Sovereign Wealth Fund and seasoned and successful investor. Norway’s great wealth is in large part courtesy of its oil riches, discovered in 1969. With great vision, the Government’s response to the discovery was the decision to create a separate, segregated fund, away from politicians’ grasp, to serve Norway’s current and future citizens. Nicolai describes his education and early investing experiences at Cazenove and Egerton, before starting the extremely successful hedge fund AKO. He talks about his education, refreshed throughout his career, and his decision to become the CEO of Norway’s SWF, otherwise known as Pension Fund Global. Nicolai talks about his immense delight in being appointed CEO, and how the investment strategy is evolving under his stewardship. He speaks about his wish to use risk in a slightly more productive way, how private assets are assessed and incorporated going forward, and how deep forensic analysis such as that undertaken in the case of Wirecard will lead them to exclude companies that might otherwise be owned as part of their ownership of 9,000 globally. The conversation encompasses a discussion about the lofty valuations exhibited within ESG assets, the stocks excluded from their investment portfolio and shown on the website, and the tension between divesting and remaining a shareholder of companies in transition. Nicolai explains why techniques drawn from behavioural analysis can help them assess the risks embedded within potential investments; the resilience that can be learned from top athletes, the dangers of inflation returning and the long term challenges facing investors and the world more generally. Finally he offers some pithy Norwegian advice on cooking, sailing, endurance, charity and why introverts are such an underutilised asset.

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn In this special episode of the Money Maze Podcast, we are extraordinarily fortunate to have General Sir Nick Carter talk to us. If the world was already becoming more fractured, divided, uncertain and worrisome- the Russian invasion of Ukraine has made that landscape vastly more troubled. Sir Nick has sat at the top table of global military and security issues both real and strategized, fathoming these complexities, and begins with a detailed evaluation of the current Ukraine war. Sir Nick offers his insights into the background and future of this situation, and then moves onto the wider geopolitical landscape, with insights on China, the Middle East, Cyber, threats to democracy, how the UK can use its strengths in this world and the evolving nature of war. A tour de force!

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn The combination of trust, experience, neutrality and secrecy were the foundations of Switzerland’s reputation as a centre for private banking, and despite globalisation, regulation, and competition from all quarters, Swiss financial institutions have maintained their position of influence, with three Swiss firms in the top ten of global wealth managers. To help explore this landscape, we welcome one of these top ten firms, and the CEO of its UK business, David Durlacher. David discusses how wealthy clients have very different goals from earlier periods, their changing priorities, how Julius Baer manages the challenge of serving different international markets, and the contrasting styles of those clients. He discusses the debate in families between selling versus retaining a family business, why a client might seek out Julius Baer as its chosen partner, and how they differentiate themselves within a crowded field. He covers the lending component of their business, why they seek to be a “sparring partner” for their clients, and why the UK represents a compelling growth opportunity for their business. Finally, in an unusual exchange, Davis discusses the role religion plays in framing his thinking about investing and the future.

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn   Gavyn Davies has more on his CV than most can imagine. In his varied career, he’s been advisor to the Labour government of Jim Callaghan, the Chief Economist at Goldman Sachs, Chair of the BBC, founder of Active Private Equity, and now Chairman of Fulcrum Asset Management. He’s also an active writer for the FT and Guardian. Gavyn starts by describing his early work as an economic advisor to the Labour governments of 1974-79, the inflation challenges they faced, and remedies implemented. He describes the emergence of Goldman Sachs on the international stage, the evolution of macro thinking, and serving as one of the “wise men” for two UK Chancellors. He then describes the challenge and opportunity for the BBC, the subsequent decision to launch Fulcrum Asset Management and their more defensive approach to managing capital. In particular, he discusses the rationale for allocating to hedge funds - and other assets - but why lower returns should be expected. Gavyn then compares the inflationary headwinds of the 1970/80s with today, why the Fed’s response is needed and should be taken seriously, fiscal policy and the withdrawal of the turbo-charged COVID responses, and which currencies he prefers. He goes on to discuss the challenges of excessive flows into the world of private equity, the attributes he looks for in allocating capital to venture PE and then in a series of rapid fire questions, he reveals his views on golf, the next PM, education, and why he loves to come to work on the London buses.