Wes Grey – “Even God Would Get Fired as an Active Investor” [PODCAST]

Wes Gray, former Captain in U.S. Marines, and founder of Alpha Architect and author of several excellent books on investing such as  DIY Financial Advisor: A Simple Solution to Build and Protect Your Wealth (Wiley Finance),  Quantitative Value,: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral ErrorsQuantitative Momentum: A Practitioner’s Guide to Building a Momentum-Based StockSelection System and one on combat,  Embedded: A Marine Corps Adviser Inside the Iraqi Army speaks with Meb Faber – video embedded below also check out Meb’s site for the full transcript and more info

What if you had perfect foresight and knew ahead of time which stocks would be the best performers? The reality is even if you knew this and invested accordingly, you’d still suffer gut-wrenching drawdowns along the way so painful (around 75%) that “even God would get fired as an active investor” if he was managing other peoples’ money. That’s the result of one of Wes’s studies which he and Meb discuss. By the way, with perfect foresight, you’d do about 28% a year, so what does that mean for those investment groups that want your business, claiming they do 35% or so a year? Then Wes says it’s not about volatility – it’s about protection against tail risk. That leads into a discussion on one of Meb’s favorite topics, managed futures, “one of the best diversifiers to a traditional portfolio.” There’s talk of Wes’s roboadvisor, timing factors, and Wes’s secret to getting the best prices on Amazon. All this and more on Episode #4.

Episode Sponsor: TheIdeaFarm.com

Exclusive: York Capital to wind down European funds, spin out Asian funds

Jeffrey Aronson Crossroads CapitalYork Capital Management has decided to focus on longer-duration assets like private equity, private debt and collateralized loan obligations. The firm also plans to wind down its European hedge funds and spin out its Asian fund. Q3 2020 hedge fund letters, conferences and more York announces structural and operational changes York Chairman and CEO Jamie Read More

Audio below and link to more here