We cover a lot of ground, including:
The challenge of distinguishing investment edge from noise over typical investing lifetimes
The concept of return stacking and how it allows investors to increase portfolio diversification
The process of determining sources of return to stack on top of stock and bond portfolios
The impact of passive investing flows on market dynamics and fundamentals
Perspectives on whether AI will significantly boost economic productivity and GDP growth
As always, Adam offers thoughtful and sometimes contrarian views on these complex subjects, drawing on his extensive experience in quantitative investing and portfolio management.
Whether you're an investment professional or individual investor, we think you'll find valuable insights in this conversation on important issues in financial markets and the economy from one of the sharpest minds in quantitative investing.
0:00 - Introduction
1:03 - Investment edge and noise
5:41 - Implications for alpha-seeking strategies
10:15 - Portable alpha and return stacking
15:52 - Demonstrating edge through simulation
21:19 - Noise in long-term returns
25:14 - Value factor performance
31:09 - Explaining futures yield
36:45 - Managed futures strategies
47:29 - Impact of passive investing on markets
53:18 - Mike Green's thesis on passive flows
59:04 - Recent topics from other guests
1:03:41 - Markets and economic reflexivity
1:07:14 - AI's impact on productivity and GDP
1:11:32 - AI's current capabilities and limitations
1:14:08 - AI in robotics and automation
1:16:58 - AI competing with human experts
1:19:27 - Closing thoughts and contact information
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