I write this update after a while because my quant model based on fundamentals and #PredictablyIrrational behaviours has analytics to prove the contrary on investing, where over 99% of fund managers continue to loose money.
He used to manage a few billion in private wealth and what he said was deep insight that got me to write this morning;
- “I would rather just manage a fund, use asset allocation models (Index/Structured/ Debt/Equity/Commodity/etc.) and allocate based on Risk and Reward expectations and then sit back and earn my 1% or more.
- There is no work after that as it all goes through large companies and funds
- I just monitor for downsides and upside opportunities that are beyond the threshold levels set on the 2Rs
On the contrary he said, if the same capital was in a VC or a PE model imagine the high risk and challenges of generating an IRR where as the manager you are the single person accountable.
My conclusion: Experts are being #Disintermediated and Expertise #Unbundled
I put these slides together from a thesis and quant model I have developed and talk about over years but in summary slides to explain the thesis (not the quant) to share in what I call #PredictablyIrrational Roundtable
A very exciting era to live in and where #Transparency creating #Trust around #IndividualBehaviour as #Currency will continue to change the status quo!
*This is just a self reflection of my thoughts and not advisory in nature of what or where to invest in