Pods & Recs: No. 163
Today we have Rob Arnott’s current thoughts on the market, the story behind the first mutual fund to ETF conversion, and Dr. Daniel Crosby on the intersection of psychology and the markets.
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Masters in Business: Robert Arnott on Global Asset Management. Arnott is the founder & Chairman of Research Affiliates, advising on $157 billion in assets. Arnott touches on a variety of topics, including fundamental indexing, the issue with valuations in the EV sector, values underperformance, the relationship between interest rates and valuations, and the ESG movement. [April 16, 2021–1 hour, 29 minutes] iTunes Podcast | Spotify | Google | Breaker | Website Link
Capital Allocators: Yen Liow — The Quest for the Right Tail at Aravt Global. Liow runs a long/short fund focused on capturing the right tail, which he defines as 5–10 year rolling period of >20% compounded returns. He has three categories for both the long side (compounders at large, secular within cyclical, and quality transitions) and the short side (structural shorts, competition shorts, and cyclical peaks). He emphasizes the psychological aspect of remaining invested over these long periods when you believe in the story. He also talks about the role of cash and leverage in a portfolio, position sizing, and the future of long/short equity managers. [April 12, 2021–1 hour, 14 minutes] iTunes Podcast | Spotify | Google | Breaker | Website Link
Doing great things with great people is probably the most joyful in the world for me.
This Week in Startups: Dapper Labs CEO Roham Gharegozlou on powering NFTs, NBA Top Shot, & CryptoKitties | E1197. Roham is the CEO behind the 2021 hit, NBA Top Shot, and shares the story behind it. He goes back to 2017 when crypto kitties became popular, which led him to pitch the NBA on launching Top Shot so the league can capture the interest in NFTs. He shares why he thinks NFT’s aren’t going to be a fad, the story behind the rights to the photos and moments used in Top Shot, and why he’s bullish on open source code. [April 13, 2021–1 hour, 2 minutes] iTunes Podcast | Spotify | Google | Breaker | Website Link
We’re building the Internet, not AOL.
All-In with Chamath, Jason, Sacks & Friedberg. The usual group is joined by Brad Gerstner of Altimeter Capital to talk about current events in markets, economy, and politics. Chamath and Gerstner start with their thoughts on IPO’s, Direct Listings, and SPACs, issues with insides having lockup periods, and the success of the Coinbase’s direct listing. Then they move to issues with California politics, why Governor Gavin Newsom is crazy for possibly not having schools start back this fall, and the difference between public and private unions. They finish by addressing issues within the media (see this Twitter thread they discussed) and lack of a bipartisan approach to solving issues right now. [April 16, 2021–1 hour 18 minutes] iTunes Podcast | Spotify | Google | Breaker
Trillions: Behind the First Mutual Fund-to-ETF Conversion. A mutual fund converted to an ETF for the first time ever last month. This episode is with the issuer and lawyer behind the conversion and dives deep into what seems to be the first of many conversions going forward. They explain the legal aspects of the conversion, why a conversion is significantly better than simply shutting down the mutual fund and launching a new ETF, and the real benefits of going through the painful work of doing a conversion instead of keeping the mutual fund structure. [April 15, 2021–35 minutes] iTunes Podcast | Spotify | Google | Breaker | Website Link
I was always worried about the unknowable unknown.
The Meb Faber Show
The Meb Faber Show: #301 — Dr. Daniel Crosby, Orion Advisor Solutions — You Want The Best Anxiety Adjusted Returns. Dr. Daniel Crosby is Chief Behavioral Officer at Orion Advisor Solutions, where he helps organizations understand the intersection of psychology and the market. Daniel begins by sharing what the 2020 bear market and pandemic looked like from a clinical psychologist’s perspective. He touches on behavioral coaching and why that’s the primary value-add a financial advisor can provide. Then they move onto topics that aren’t discussed much: mental health, social isolation, and depression. He explains why it’s helpful for advisors to have their own therapist to help them handle the day-to-day stresses of the job, and how the increased social isolation over the last year translates to what we’ve seen recently with Reddit, Robinhood and NFT’s. As the episode comes to an end, they discuss the potential for technology to help us become better investors and how some fintech firms are using technology and nudges to encourage bad behaviors. [April 12, 2021–59 minutes] iTunes Podcast | Spotify | Google | Breaker | Website Link
The Meb Faber Show: #302 — Lisa Rich, Hemisphere Ventures, Xplore — There’s Never Been A More Exciting Time For The Space Industry. Lisa Rich is a managing partner of Hemisphere Ventures and founder and COO of Xplore, both of which are focused on the space sector. Lisa talks about recent developments within the space sector, including both SPAC’s and Ark Invest’s new space ETF on the sector. Then she shares updates on some of her prior investments, including Axiom Space and their quest to build the first commercial space station. At the end, she covers what’s going on with Xplore and the development of their spacecraft, the Xcraft. [April 14, 2021–44 minutes] iTunes Podcast | Spotify | Google | Breaker | Website Link
Rob Arnott (Founder & Chairman, Research Affiliates):
- Ten Global Trends Every Smart Person Should Know: And Many Others You Will Find Interesting by Ronald Bailey and Marian Tupy
- 1491: New Revelations of the Americas Before Columbus by Charles C. Mann
- 1493: Uncovering the New World Columbus Created by Charles C. Mann
Yen Liow (Managing Partner, Aravt Global):
Ted Seides (Host, Capital Allocators):