Valley Investors Podcast with Nathan Erickson

In this episode of the Valley Investors Podcast, Don Opatrny shares his path from Cleveland to Cornell, through Wall Street and eventually to philanthropic leadership in Arizona. Don reflects on a dynamic career at Goldman Sachs that spanned corporate finance, international restructuring, and asset management. Now based in Phoenix, he’s channeling his expertise into nonprofit investment strategy—especially through his work at the Arizona Community Foundation. From practical insights on endowment management to stories about building impactful cultural and educational institutions, Don offers a masterclass on financial stewardship and civic engagement.   Key Discussions in This Episode:  00:00 – Intro & Background 03:07 – Career Journey Begins 05:56 – A Global Career at Goldman Sachs 10:22 – A Return to Roots with Endowment Work 14:51 – Arizona Connection 15:22 – Arizona Community Foundation (ACF) 19:31 – Inside the ACF Portfolio 28:55 – Private Equity in Endowments 36:58 – Market Views & Risk Management 44:38 – Broader Economic Shifts 47:02 – Beyond Finance: Arts, Environment, Education 51:28 – Why Arizona?   Links:  Arizona Community Foundation: https://www.azfoundation.org/ Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/  Don Opatrny on LinkedIn: https://www.linkedin.com/in/don-opatrny-544069268/  

In this episode of the Valley Investors Podcast, host Nathan Erickson welcomes Bill Nygren, Partner, and Chief Investment Officer at Harris Associates and Vice President of Oakmark Funds. Bill shares his journey from a working-class high school in St. Paul, Minnesota, to becoming a distinguished value investor managing the Oakmark Fund. He discusses his investment philosophy, lessons from his early career, and insights into the current market environment. Bill reflects on the evolution of value investing over four decades, why value still matters, and how he identifies opportunities in an increasingly intangible-driven economy. The conversation also explores the challenges investors face today with the abundance of information, the role of AI in transforming industries, and the persistence of value investing in an era dominated by mega-cap growth stocks.   Key Discussions in This Episode:  [00:00:00] - Intro to the Podcast and Guest [00:01:26] - Bill’s Early Years and Path to Investing [00:07:16] - From the University of Minnesota to Wisconsin [00:12:46] - Early Career Lessons [00:15:16] - The Evolution of Value Investing [00:24:18] - AI’s Impact on Businesses [00:26:05] - Interest Rates and Their Implications [00:31:46] - GM as a Prime Example of Value Investing [00:39:16] - Challenges for Modern Investors [00:42:16] - Arizona and Cubs Spring Training [00:43:46] - Closing Remarks     Links:  Oakmark Funds: https://oakmark.com/ Bill Nygren: https://harrisassoc.com/ Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/ 

In this episode of Valley Investors, Nathan Erickson welcomes Rob Arnott, Founder and Chairman of Research Affiliates, and a featured speaker at the upcoming CFA Society Phoenix Market Forecast Dinner. Rob discusses his pioneering work in fundamental indexing, the evolution of quantitative investing, and the importance of rebalancing in capturing returns. He shares insights into the limitations of traditional market-cap-weighted indices, behavioral investing biases, and the impact of indexing on market dynamics. Rob also explores the role of AI in finance, macroeconomic trends, and his cautious yet optimistic long-term outlook for global value stocks and emerging markets. Tune in for a deep dive into the future of asset management and market performance.     Key Discussions in This Episode:   [00:00:00] Introduction to the Valley Investors Podcast   [00:01:00] Introduction to Rob Arnott and his achievements  [00:03:15] Rob discusses his college journey and early interest in investing  [00:05:00] The influence of his first stock pick at age 12 and lessons learned  [00:06:15] The origin of the fundamental index concept and its development  [00:09:00] Key advantages of fundamental indexing over market-cap-weighted indices  [00:11:20] Behavioral biases in investing: why investors chase winners and avoid losers  [00:13:00] Discussion of the "Malkiel's Monkey" paper and random portfolios outperforming active managers  [00:17:00] Explanation of how rebalancing contributes to portfolio performance  [00:20:20] Rob describes the structural growth tilt in cap-weighted indices  [00:25:00] The rise of indexing and its implications for market dynamics  [00:32:40] The creation of the NIXT strategy based on index deletions and its early success  [00:40:00] Performance analysis of stocks removed from major indices  [00:43:00] Rob's long-term market outlook: concerns about valuations and value stocks  [00:46:50] The importance of macroeconomic trends and government spending in shaping economic growth  [00:50:20] Rob’s perspective on artificial intelligence and its role in investment processes  [00:54:10] Rob’s thoughts on the rapid pace of technological advancement  [00:55:30] Rob shares his fond memories of visiting Arizona and his excitement about the CFA event       Links:   Research Affiliates: https://www.researchaffiliates.com/home  Rob Arnott on Linkedin: https://www.linkedin.com/in/rob-d-arnott  Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/   Cumulative Relative Wealth: https://drive.google.com/file/d/1jkOwwO_3YxiGYzwaUBTLDEZRCj-vTIWa/view?usp=sharing   

In this episode of Valley Investors, host Nathan Erickson sits down with Dr. Hendrik Bessembinder, the Francis J. and Mary B. Labriola Endowed Chair at Arizona State University. Dr. Bessembinder shares his unique path from motorcycles to academia, diving into his extensive research on market design, trading strategies, and long-term investment performance. They explore his most famous work, "Do Stocks Outperform Treasury Bills?" and discuss the implications for both passive and active investors. The conversation also covers market trends, retirement planning, and the evolving risks in today's concentrated markets.   Key Discussions in This Episode: [00:00:55] Dr. Bessembinder’s academic journey and love for motorcycles. [00:02:35] Transition from business school to a PhD in economics. [00:05:04] Early academic career and corporate experiences. [00:07:02] Joining Arizona State University in 1989 and the growth of the finance department. [00:09:59] Shifts in research focus from commodities to long-term stock performance. [00:12:58] Key findings from "Do Stocks Outperform Treasury Bills?" paper. [00:19:04] Concentration of wealth in a small number of stocks. [00:26:30] Risk management and portfolio rebalancing. [00:31:15] Market efficiency and skewness in stock returns. [00:36:20] Retirement planning and sustainable withdrawal rates.     Links: Arizona State University: https://www.asu.edu/ Hendrik Bessembinder on Linkedin: https://www.linkedin.com/in/hendrik-bessembinder-0537a0298 Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/

In this episode of Valley Investors, Nathan Erickson interviews Kory Leadon, CFP, senior lead advisor at Brighton Jones. Kory shares his journey from growing up in Yakima, Washington, to his long tenure at Brighton Jones. He discusses the firm's unique approach to wealth management, the importance of tax planning, and how they integrate personal CFO services for their clients. Kory also delves into his community involvement and the personal philosophy that drives his commitment to helping others. Tune in to learn about investment strategies, the role of a personal CFO, and the vibrant community life in Phoenix.   Key Discussions in This Episode: [00:00:58] Kory Leadon's background and education [00:03:41] Founding and growth of Brighton Jones [00:06:10] Opening the Scottsdale office [00:07:18] Investment philosophy and approach [00:09:24] Cash needs and risk management strategies [00:12:24] Tax-aware investing [00:14:32] Changes in investment strategies over the years [00:19:09] Private equity and private credit investments [00:22:41] Comprehensive financial services beyond investment [00:24:32] Future outlook and managing client expectations [00:27:15] Community involvement and charitable activities [00:33:12] Life and community in Phoenix     Links: Brighton Jones Kory Leadon on LinkedIn Nathan Erickson on LinkedIn

In this episode, Nathan Erickson welcomes Boots Dunlap, CEO and Co-founder of RRA Capital. Boots shares his journey from the military to real estate, detailing how his family’s deep roots in Arizona shaped his career. He discusses the evolution of Arizona’s economy, the intricacies of real estate cycles, and the innovative strategies behind RRA Capital’s success in private credit and bridge lending. Tune in to gain valuable insights into the current real estate market and the future of investment in Phoenix.   Key Discussions in This Episode: [00:01:19] Boots Dunlap's family history and connection to Arizona [00:03:15] Transition from military service to real estate [00:04:41] Impact of the Great Financial Crisis on his career [00:05:56] Founding RRA Capital during economic downturns [00:09:14] Evolution and diversification of Arizona’s economy [00:12:05] Distinctions between real estate equity and debt [00:16:29] Strategies in private credit and bridge lending [00:19:27] Geographic and product diversification in real estate investing [00:24:00] Examples of adaptive reuse and space arbitrage [00:31:27] Market dynamics in hospitality, retail, and industrial sectors [00:39:10] Insights on private credit market trends [00:52:54] Importance of volunteer work and community engagement   Links: RRA Capital Boots Dunlap on LinkedIn Nathan Erickson on LinkedIn  

Mark Steed, Chief Investment Officer at PSPRS, discusses pension management challenges, AI integration in investments, and community engagement. Topics include asset allocation, alternative investments, AI in private equity, and the impact of PSPRS on Arizona residents.

In this episode, Nathan Erickson welcomes Dr. Sunil Wahal, the Jack D. Furst Professor of Finance and the Director of the Center for Responsible Investing at Arizona State University, also serving as a consultant for Avantis Investors. Dr. Wahal shares his global journey in finance, from his early years in India, London, and Hong Kong to his academic and professional endeavors in the United States. With his extensive experience, Dr. Wahal discusses the intricacies of institutional investing, market efficiency, and the evolving landscape of private and public markets. Listeners will gain insights into his research and methodologies that influence modern investment strategies and the crucial role of integrity and honesty in financial services.   Key Discussions in This Episode: [00:01:08] Dr. Wahal’s diverse cultural and professional background [00:03:07] Transition from skepticism to interest in finance [00:05:12] Decision against a conventional career post-MBA [00:08:06] Journey to Arizona State University [00:09:57] Research focus on investment strategies and market behavior [00:14:16] Discussion on private markets and investment challenges [00:18:52] The illusion of illiquidity as a feature in private investments [00:23:48] Dr. Wahal’s work with Dimensional Fund Advisors and Avantis [00:28:46] Impact of artificial intelligence on market trading [00:31:29] The role of ethics and responsibility in investment advising [00:36:43] Evolution of the Student Investment Management Fund at ASU [00:44:20] Initiatives and future plans of the Center for Responsible Investing [00:50:56] Prospective research on growth and profitability in public equity [00:53:32] Importance of honesty and integrity in the finance industry [00:55:47] Dr. Wahal’s personal affinity for Arizona’s wilderness     Links:   Arizona State UniversityAvantis Investors Dr. Sunil Wahal on LinkedIn Nathan Erickson on LinkedIn

In this episode, host Nathan Erickson sits down with Paul Matson, the Executive Director of the Arizona State Retirement System, to explore the intricate world of pension fund management. Paul shares his journey from Canada to Arizona, shedding light on the nuances between Canadian and U.S. investment strategies and the pivotal role of governance in achieving organizational success. Listeners will gain an understanding of the Arizona State Retirement System's approach to internal versus external asset management, strategic asset allocation, and the impact of international relations on investment decisions. Paul also discusses the importance of continuous learning and the value of the CFA designation in his career, offering profound insights into managing risk and optimizing investment returns in today's dynamic financial landscape.   Key Discussions in This Episode: [00:01:44] Paul Matson's early career and influences from working at Alberta Treasury Department [00:07:43] Transition to ASRS and the shift towards internal asset management [00:14:53] Comparisons between Canadian and U.S. investment models [00:32:01] ASRS's governance model and its impact on decision-making [00:37:33] Advantages of ASRS's diversified investment approach [00:42:48] Unique aspects of ASRS's investment operations and liquidity management [00:44:18] Risk mitigation and portfolio construction strategies [00:51:20] Conceptualizing investment risk and mitigating contribution rate volatility [00:59:15] Expected rate of return and the use of a building block methodology post-2008 [01:01:32] Discussion on leverage within the portfolio and its tactical use [01:04:17] ASRS's stance on market efficiency and tactical leveraging opportunities Links: Arizona State Retirement System Paul Matson on LinkedIn Nathan Erickson on LinkedIn

In this episode, Nathan Erickson welcomes Gargi Chaudhuri, the Head of iShares Investment Strategy at BlackRock. Gargi brings her extensive experience of over two decades in the financial markets, offering a wealth of knowledge in fixed income and equity strategy. Listeners will gain invaluable insights into the evolving landscape of global finance, from the intricacies of Bitcoin ETFs to the potential of AI in transforming various sectors.   Key Discussions in This Episode:   [00:01:25] Gargi's journey from India to Wall Street, marking the beginning of her illustrious career in finance [00:02:46] The transition to BlackRock and her current role in iShares, emphasizing the importance of diverse viewpoints and collaborative decision-making in the investment process [00:08:17] Gargi's analysis of the economic outlook for 2024, contemplating the prospects of growth, inflation, and the potential actions of the Federal Reserve [00:23:31] A deep dive into the impact of AI on the financial markets and its future implications beyond the tech sector [00:27:50] Asset allocation strategies for 2024, considering the shifting dynamics in equity markets and the potential of emerging economies [00:32:11] BlackRock's foray into Bitcoin ETFs, discussing the nuances of incorporating digital currencies into investment portfolios [00:40:27] The evolution of investing over the past two decades, highlighting the rise of ETFs, the speed of information, and the global reach of business operations [00:44:05] The challenges investors might face in the next 5-10 years, including adapting to a world of higher interest rates and managing the implications of growing deficits   Links: BlackRockGargi Chaudhuri on LinkedIn Nathan Erickson on LinkedIn