The Meb Faber Show - Better Investing

Latest Episodes:

KraneShares' Brendan Ahern: Is China Investable? | #535 May 31, 2024

Show notes

Today’s guest is Brendan Ahern, Chief Investment Officer at KraneShares, which provides investors access to China, Climate, and other uncorrelated strategies. He also produces China Last Night, a daily note recapping important news out of China.

In today’s episode, Brendan delves into the current state of China's stock market and economy, exploring the impact of the property crisis, upcoming U.S. election and the state of the consumer. Our discussion addresses key questions on whether China remains a viable destination for investors, considering recent regulatory changes, economic policies, and global market dynamics.

(1:02) Introducing our guest, Brendan Ahern

(5:53) The state of China's economy

(14:18) Analysis of China's geopolitical concerns and international partnerships

(20:01) The narrative around China post Russia-Ukraine

(22:03) Deep dive into KWEB

(29:44) Implications of the US election

(32:40) Discussion on currency hedging

(33:52) Other KraneShares' funds

(41:44) Will TikTok be banned

(43:52) Brendan's most memorable investment

(46:18) Future plans for KraneShares

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Sponsor: 10 East is a membership-based investment firm founded by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner, focused on providing targeted exposure to private markets. Members invest at their discretion in single-investment and niche fund vehicles across private credit, real estate, private equity, and venture capital.

Follow The Idea Farm: Twitter | LinkedIn | Instagram | TikTok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker,Aswath Damodaran, Howard Marks, Tom Barton, and many more.

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

Michael Melissinos - Mastering the Art of Trend-Following | #534 May 24, 2024

Show notes

Today’s guest is Michael Melissinos, founder of Melissinos Trading, an investment firm that employs a systematic trend-following approach.

In today’s episode, Mike shares his journey into trend following and his approach to trading. He emphasizes the importance of removing biases and opinions when observing trends and executing trades. We get into the nuances of trend following, sticking to a trading system, and much more.

(0:00) Introduction of guest Mike Melissinos and his journey into trend following
(6:08) Jumping into trend following
(10:07) Implementation and execution of trend following strategies, with emphasis on risk management
(14:19) Deciding what markets to trade
(16:33) The pitfalls of overriding your system
(21:24) Questioning assumptions and the benefits of sticking to a system
(28:40) Trading during the 2020 COVID crash and the subsequent inflation wave
(30:07) The unexpected downfall of the 60/40 in recent years
(33:11) Long term versus short term trading systems
(36:06) Mike's most memorable investment

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Follow The Idea Farm: Twitter | LinkedIn | Instagram | TikTok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

Eric Crittenden & Jason Buck Explain Why Best Investors Follow the Trends | #533 May 10, 2024

Show notes

Today’s guests are Eric Crittenden, CIO of Standpoint Asset Management, and Jason Buck, CIO of Mutiny Funds.

In today’s episode, we talk about the sentiment around trend-following today. We discuss optimal diversifiers for trend-following, how the Herschel Walker trade relates to portfolio construction, and if investors are as diversified as they think they are.

(1:01) - Welcome back to our guests, Eric and Jason; Episode #389: Eric Crittenden; Episode #440: Jason Buck
(2:02) - Investor interest in trend following
(6:00) - Herschel Walker Syndrome
(15:55) - Building a portfolio away from the traditional 60/40
(18:08) - Rob Lintner Revisited
(29:02) - Interest overseas
(41:30) - Paul Mulvaney’s back-to-back 40% months
(51:19) - Show recommendations
(56:22) - What Jason & Eric are hearing from investors today
(1:03:22) - Love for ETFs
(1:10:12) - Pairing trend following with factor investing
Learn more about Eric and Jason: Standpoint; Mutiny Fund

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only).

Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

Hendrik Bessembinder - Do Stocks Outperform T-Bills? | #532 May 03, 2024

Show notes

Today’s guest is Hendrik Bessembinder, a professor at Arizona State University.

In today’s episode, Meb and Hank discuss Hank's research on long-term stock returns and wealth generation. They explore the concept of power laws in the stock market, where a small percentage of stocks generate significant returns, while the majority underperform. They also discuss the implications of Hank's findings for investors, including the importance of diversification and the challenges of holding onto big winners.

(1:06) - Welcome to our guest, Hendrik Bessembinder
(1:27) - Do Stocks Outperform Treasury Bills?
(6:16) - Power laws drive stock market returns
(13:52) - The importance of holding on to winners in your portfolio
(15:22) - Shared traits among the best stocks
(23:10) - Takeaways from his global studies
(28:21) - Mutual Fund Performance and Long Horizons
(31:34) - Other topics Hank is interested in researching
(37:52) - Hendrik’s most memorable investment
Learn more about Hendrik: SSRN; Lessons from Bessembinder

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

GMO's Catherine LeGraw - Capitalizing on Global Asset Allocation in 2024 | #531 Apr 26, 2024

Show notes

Today’s guest is Catherine LeGraw, a member of GMO’s Asset Allocation Team.

In today’s episode, Catherine explains why this is “the best relative asset allocation opportunity we’ve seen in 35 years," and “we are building portfolios with some of the highest forecasted relative and absolute returns we’ve ever seen." She explains where she sees opportunity around the world today, why she’s excited about deep value and quality, and how she’s thinking about the Magnificent 7.

(1:34) - Welcome to our guest, Catherine LeGraw
(1:45) - Why Catherine is so excited about the opportunity set today (Record Highs…But We’re Still Excited)
(8:04) - The Magnificent 7 (Magnificently Concentrated)
(14:39) - The opportunity in deep value
(17:10) - Opportunities in foreign stocks
(20:38) - GMO 7-Year Asset Class Forecast (Feb. 29, 2024)
(23:46) - Currency implications
(24:56) - The current state of bonds
(30:46) - Other interesting assets
(34:35) - Jump in the Deep End / GMO
(34:59) - Catherine’s most controversial opinion
(37:04) - Catherine’s most memorable investment
(38:41) - What in Tarnation

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

Professor Kenneth French on Risk, Return, and Rationality | #530 Apr 19, 2024

Show notes

Today’s guest is Professor Ken French, the Roth Family Distinguished Professor of Finance at the Tuck School of Business at Dartmouth College. He’s written some of the most influential papers in finance alongside former podcast guest, Professor Eugene Fama.

In today’s episode, Ken shares what topic he and Professor Fama disagree on. Then we get into a number of topics: what it means to truly be a long-term investor, the global market portfolio, misconceptions around stock buybacks, and much more.

(01:17) - Welcome to our guest, Kenneth French

(03:35) - Investing in FAANG Stocks: Should You Expect Unexpected Returns?

(07:10) - Deciphering an investors skill vs. luck

(15:12) - Having an investment plan

(20:24) - The global market portfolio

(25:02) - Thoughts on gold and other commodities

(26:26) - Incorporating human capital

(32:12) - Ken’s thoughts on stock buybacks

(35:36) - Improving financial education

(40:10) - Disagreement, Taste, and Asset Prices

(44:05) - Ken’s most controversial opinion

(46:37) - Ken’s most memorable investment

Resources

Ken’s website

The Best Way To Add Yield To Your Portfolio by Meb Faber

The Arithmetic of Active Management by Bill Sharpe

Things I’ve Learned from Gene by Kenneth French

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Follow The Idea Farm: Twitter | LinkedIn | Instagram | TikTok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

MEBISODE: T-Bills and Chill…Most of the Time | #529 Apr 12, 2024

Show notes

In today’s episode, Meb reads a white paper, “T-Bills and Chill…Most of the Time.”

-----

Follow Meb on Twitter, LinkedInandYouTube

To learn more about our funds and follow us, subscribe to our mailing list.

-----

Follow Meb on Twitter, LinkedInandYouTube

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Visit YCharts to start your free trial and be sure to mention "Meb" for 20% off your subscription (new clients only).

Sponsor: Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here.

Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

Cliff Asness: Timely & Timeless Investment Wisdom | #528 Apr 05, 2024

Show notes

Today’s guest is Cliff Asness, co-founder, managing principal and Chief Investment Officer at AQR Capital Management.

In today’s episode, Cliff & I start by talking about some quotes he may or may not have said in the past. Then we kick around a bunch of topics. We talk about diversifying by both asset class and geography, the challenge of managing short-term expectations while keeping a long-term perspective, and how AQR is implementing AI and machine learning in their investment process.

(1:20) - Welcome to our guest, Cliff Asness

(1:45) - Cliff’s article in the Financial Times

(2:30) - Parsing Cliff’s real quotes from fake ones

(8:56) - Thoughts on bonds as a diversifier

(13:37) - Moving away from market-cap weighting

(19:27) - Managing client expectations

(29:30) - AQR Data Sets

(29:56) - Alternative trend-following

(43:48) - Position resizing for alternative strategies

(48:06) - AQR implementing AI in their investment process

(51:46) - Cliff’s most controversial opinion

(57:39) - Cliff’s most memorable investment

Learn more about Cliff: AQR; Twitter

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Sponsor: Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here.

Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----

Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here!

Indexing Nevada PERS: Steve Edmundson’s $60 Billion Strategy | #527 Mar 29, 2024

Show notes

Today’s guest is Steve Edmundson, the Chief Investment Officer of the Public Employees’ Retirement System of Nevada, which manages over $60 billion.

As pension funds continue to hire more employees, pay more and more fees and build more complex portfolios, Steve is an outlier for his approach that emphasizes simplicity over complexity. He’s one of two investment professionals on staff and has indexed 100% of all publicly traded asset classes. I love it!

Steve talks about the culture that allows this model to work and shares some thoughts on the rise of private markets and the impact of higher interest rates.

The late Jack Bogle had a quote that applies well to Steve & Nevada PERS: “Don’t do something, just stand there!”

-----

Follow Meb on Twitter, LinkedInand YouTube

For detailed show notes, click here

To learn more about our funds and follow us, subscribe to our mailing listor visit us at cambriainvestments.com

-----

Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok

-----

Interested in sponsoring the show? Email us at Feedback@TheMebFaberShow.com

-----