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But yes, I was given my own column and by that point, having seen all these star managers come and go, you know, I had become an index fund devotee, and in column after column I banged the drum for index funds to the point where my editors were asking me, Hey, could you write about something else? You just needed a brokerage account.
So now we’re everywhere and we’re serving every type of wealth client internationally, domestic self-directed through a brokerage account all the way through complete discretionary. Can we give every single one of your employees a account or advice, you know, to their first, you know, purchase in a 5 29 account?
00:16:36 [Speaker Changed] Yeah, I’m, I’m not gonna check your math on that, but I’ll, I’ll buy Eric saying your, your estimate there on what we’ve saved investors over time. I think we could ballpark it closer to $2 trillion. And I think the focus on cost has been relentless.
Which was interesting because I actually started my career at JP Morgan Asset Management in the high yield and investment grade credit research team. And I did a lot of options math, which I thought was interesting. 00:07:26 And then I moved on to the equities team afterwards. And I just learned a tremendous amount. To draw upon.
Sander Gerber : Well, actually I was good at math. So at the time, well, I left the floor beginning of 95 and started deploying just the money I’d earned on the floor in off floor trading account. And it gives us a batting average so we can understand is a portfoliomanager winning more ideas than they lose.
She has a really fascinating background, very eclectic, a combination of math and law. You, you get a, a BS in Mathematics and a JD from Boston University Math and Law. It is something, math has always come easy to me since a child. I didn’t get an advanced degree in math. Not the usual combination. What happened?
I’d say management consulting is any of the other thing that least at that time was the other career trajectory, just my personality, more of a math oriented introvert. Now I do fundamental side research portfoliomanagement, which I just, 00:08:20 [Speaker Changed] So, so you joined GMO, there’s 60 people, 30 years.
All of their portfoliomanagers not only are substantial investors in each of their funds, but they do a disclosure year that shows each manager by name and how much money they have invested in their own fund. I know you do separately managedaccounts, you do mutual funds and you also do a CIT explain those choices.
I was always good at math, but I really, I just didn’t relate to things that were more esoteric bonds options. I worked in sort of a quasi portfoliomanagement role for like a single client account type business. And he said, if I wanted an accountant, I wouldn’t have come to you.
The topics covered are personal finance math, retirement problems, introduction to mutual funds, the concept of fund & NAV, equity schemes, debt funds, investing in bonds, index funds, rolling returns, Exchange-traded funds(ETF) and basics of macroeconomics.
And I did the math, and I think at that point in time, roughly speaking, assets in ETS were roughly just 10 percent, 12 percent of assets in mutual funds and I was pretty convinced that that number was to increase significantly. I remember telling myself, why would anyone invest in mutual funds when you can buy an ETF instead? BERRUGA: Yeah.
You might quibble with some of his accounting, but directionally, it is clearly correct in our view. Even with 75% accuracy we only move from an investable universe where 30% of constituents outperform to now selecting the portfolio from a pool with a 56% win rate. For these accounts, gross returns are also net of custody fees.
This year, VBINX is down 18% while NTSX is down almost 24%, the math appears to check out. Getting some disclosures out of the way; BLNDX is a client and personal holding, I am test driving RDMIX for possible use in client accounts, in the past I test drove MBXIX and SPYC and decided not to use them. Does it do what it's supposed to?
And my dad had always said, as many young kids get this advice, doctor, lawyer, accountant, engineer. SALISBURY: And accountant seemed like a reasonable option. And I kind of stumbled my way into accounting. That background of being an accountant was just great bedrock training. RITHOLTZ: Sure. Very different fields.
She was a partner and a portfoliomanager at Canyon Capital, a firm that runs currently about $25 billion. What accounts for the difference between the two in your experience working on the trading desk? BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, my extra special guest is Dominique Mielle.
00:03:14 [Mike Greene] So that was actually an outgrowth from my experience coming out of Wharton and you mentioned the, the, you know, the transition of people who tended to be skilled at math or physics into finance. And so I’m gonna own this in a 401k, it’ll be a mutual funds in a taxable account. It goes so far.
For us, the insurance would cost $1400-$1500/mo plus then the $8750 into our HSA account versus now spending about $750/mo. Here I am talking not just portfoliomanagement but overall lifestyle, habits and choices and yes this does filter into my day job managing investment portfolios. Hard pass from me.
But it was a tremendous experience because I had started off in bond trading, worked my way into portfoliomanagement and running the bond indexing team for a number of years, and then I got asked to take this responsibility, which was much broader. DAVIS: We definitely saw a number of clients who started embracing money markets.
So I, I did a math degree at Oxford, which is more pure math. You know, pure math can be very theoretical and detached from the real world, and it’s getting worse. Those have compounded over the centuries and have managed to amass a huge amount of, of capital. He is portfoliomanager at Orbis Holdings.
Joel Tillinghast : Well, okay, G, when he was six, my grandfather, who was a bookkeeper accountant at a textile mill died and my grandmother was a second string violin at the Providence Symphony Orchestra, which didn’t pay well then, and I suspect didn’t pay well now. And I was a math nerd as a kid. Tell us about that.
I’m kind of in intrigued by the idea of philosophy and math. So I found myself getting kind of bored with my math problem sets, and then I could shift to philosophy and then go back and forth. Unfortunately, nobody has the luxury of picking stocks for a 10 year period anymore, except for in, you know, our personal accounts.
Picture Credit: David Merkel, with an assist from the YouImagine AI image generator || Boldly flying in front of a stained glass window PortfolioManagement Sick of the ups and downs of the markets? Jan 08, 2023 Also, the article is wrong when it states that current math pedagogy favors boys over girls.
Matt Eagan has spent his entire career in fixed income from credit analyst to portfoliomanager. Now he’s the head of the discretion team at Loomis Sales, which manages well over $335 billion in client assets. I started out math and, and physics, and in high school I was a rock star in math and physics.
I was a fixed income portfoliomanager and trader, which is a ton of fun. PIMCO out on the West Coast, read the first thing I wrote in the Journal of PortfolioManagement. So I definitely think you want to account for that in places like price-to-book in earnings. Program didn’t feel right. Is that a word?
I’d been ranked i i back in the seventies, if you can do the math. 00:14:23 [Speaker Changed] Well, if I get 5% in the money market, why am I’m gonna leave cash in a savings or a checking account? He helps portfoliomanagers make sense of the world. Plus, you know, take everything into account.
I mean, you’re talking about, I don’t, I could do the math, it’s like a 10,000% return in like three weeks. And so look, ultimately, like I did an accounting of this recently for Semafor and the bill comes to something like $62 billion out the door of which less than a third is designed to be repaid. RITHOLTZ: Right.
Jeffrey Sherman : Well, what it was was, so I, as I said, with applications, there’s many applications of math, and the usually obvious one is physics. Barry Ritholtz : It seems that some people are math people and some people are not. The, the math came easier. And I really hated physics, really. It’s so true.
And I, and I really like the application of math and statistics and computer science to markets. You learn the math that can help you with, with market making operations. It’s just not smart on a math basis to do that. And I just caught the bug. Become options market makers. You learn the technology.
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