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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 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 I, I think that I kind of triangulated on it. I have no family history. I had two stops before then.
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.
So, first, I found the book to be quite fascinating, very in depth and you managed to take some of the more technical arcana and make it very understandable. You began as a central bank portfoliomanager in Finland. So, that relationship actually already started when I was a portfoliomanager, right? ILMANEN: Yes.
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. And then that is essentially what, what I’m referring to as self-directed. I think we could ballpark it closer to $2 trillion.
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. That paper refers back to the foundational literature of Bill Sharp, who wrote the famous paper in 1991.
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. And I actually find myself referring back to it in my personal and professional life that you know what?
Sander Gerber : Well, actually I was good at math. But risk management is always about understanding what could go wrong and quantifying what could go wrong. First you’re referring to your approach is, hey, we’re really more process focused than outcome focused. What was the career plan?
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. I think they are far more rare than the way a lot of Wall Street refers to him. The one you’re referring to was about value timing.
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.
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