Excess Returns

Larry Swedroe, a seasoned finance expert, shares nine crucial lessons investors learned from the unpredictable landscape of 2024. He unpacks why market forecasts often fail, debunks the 'Sell in May and Go Away' myth, and highlights the vital role of diversification. With insights on the cyclical nature of asset returns and the pitfalls of active management, Larry emphasizes patience in investment strategies. His engaging anecdotes and practical advice provide a roadmap for escaping common behavioral biases and building resilient portfolios.

Scott McBride, CEO and portfolio manager at Hotchkis and Wiley, shares his two decades of experience in value investing at a $33 billion firm. He discusses how market sentiment can create long-term opportunities and the significance of company governance over traditional valuation metrics. McBride emphasizes the importance of team culture, a contrarian mindset, and the benefits of analyzing less-covered stocks. He also touches on the impact of AI and the potential in international markets, particularly in Europe and the UK.

Mike Taylor, a seasoned portfolio manager at Simplify’s PINK healthcare ETF, brings a wealth of experience from top hedge funds like Citadel and Millennium. He discusses the importance of having 'skin in the game' and shares insights on high-conviction investments. Mike's unique take on international investing and macro trends provides valuable lessons for navigating global economic challenges. He also reflects on the complexities of market dynamics, equity analysis, and even shares a personal passion for cars, intertwining financial wisdom with his interests.

In this lively discussion, hosts tackle trade wars and their unexpected parallels in personal relationships. They delve into the rise of home-based fabrication and how 3D printing is reshaping production. The conversation shifts to volatile experiences in the cryptocurrency market, reflecting on NFTs and investment absurdities. Additionally, they explore the disconnect between strong labor statistics and the real struggles of knowledge workers. The episode wraps up with insights on youth challenges in the music industry against a backdrop of economic uncertainty.

In a captivating discussion, veteran trader and author Jack Schwager shares insights drawn from his interactions with the world's top traders, including legends like George Soros. Schwager highlights the unchanging nature of trading psychology and the essential role of risk management. He emphasizes the difference between true risk and volatility, drawing from notable events like the 2008 financial crisis. Schwager also previews his upcoming book, promising to deliver timeless lessons for both new and seasoned traders.

Cliff Asness, the founder of AQR Capital Management and a leader in quantitative investing, injects humor into serious discussions about market efficiency. He challenges the myth of rigid morning routines, advocates for embracing investment discomfort, and reflects on the evolution of factor investing. Cliff shares thoughts on passive investing’s sustainability and warns against emotional reactions by encouraging investors to minimize portfolio check-ins. His unique blend of wit and wisdom makes complex financial concepts refreshingly accessible.

In this engaging discussion, Rob Arnott, the founder of Research Affiliates and a pioneer of fundamental indexing, shares over 40 years of investment wisdom. He tackles pervasive investing myths, debunks the misapplication of 'smart beta,' and highlights the deceptive nature of historical returns. Arnott also explores the inefficiencies created by index funds and the current challenges for U.S. growth stocks. Additionally, he emphasizes the potential of small-cap and value stocks in today's market, providing valuable insights for savvy investors.

In this chat with Doug Clinton, an AI expert from Intelligent Alpha, we dive into the groundbreaking use of large language models like ChatGPT in investment strategies. Doug reveals how these AI systems construct portfolios that minimize emotional biases, enhancing stock selection and position sizing. The conversation touches on the delicate balance between human intuition and machine efficiency in investing. Doug also shares insights on the future of AI, pondering whether it will complement human analysts or take a more dominant role.

Joining the discussion is Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, known for her data-driven insights. She delves into the shift from the 'Great Moderation' to a 'Temperamental Era,' marked by increased volatility. Liz Ann emphasizes the need to look beyond headline indices, the importance of behavioral sentiment in investing, and lessons from legendary investor Marty Zweig. She advocates focusing on sound investment decisions amidst uncertainties rather than future predictions, offering enduring wisdom for all investors.

Dive into the world of intangible value investing with expert insights on the underappreciated assets driving modern companies. Discover how traditional metrics overlook key elements of value and why U.S. firms consistently outshine their international counterparts. Learn about the four pillars of intangible value and the role of AI in reshaping investment analysis. Uncover surprising trends in global patent leadership and strategies for navigating and capitalizing on investment opportunities in both domestic and international markets.