Careers in Systematic Investing: Advice and Perspective at the End by Matthew Granade
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Transcript of Careers in Systematic Investing: Advice and Perspective at the End by Matthew Granade
What do you need to decide to be investor?
6
1. What is your style?
2. How will you manage the piIalls?
3. How will you compound?
1. What is your style?
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• Long/short
• Equi:es
• Fundamental + technical
• Discre:onary
• 50+ porIolio managers w/ one ‘uber’ PM
• One month horizon
• Long/short
• Bonds, currencies, commodi:es, equi:es
• Fundamental
• Systema:c
• 1 “porIolio manager”
• Six month horizon
Fund “P” Fund “B”
1. What is your style?
8
“Where would you put your money?” Mr. Ackman asked... “Let’s say you were to buy one asset, or one stock, or one market, or one currency.” There was a pause. “I don’t do that,” Mr. Dalio said. “O.K,” Mr. Ackman said. “I’m sorry,” Mr. Dalio said.
-‐ From Feb 12, 2014 interview at Harbor Conference, New York
1. Dimensions of style
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• Long only vs. long/short • Asset class(es) • Strategy, e.g., - Fundamental - Technical - High frequency
• Discre:onary vs. systema:c • Concentrated vs. diversified • Investment horizon
2. Prepare to be wrong.
11
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.”
-‐-‐ George Soros
“If you can’t understand it, don’t do it”
-‐-‐ Charlie Munger
“Anything can happen in stock markets and you ought to conduct your affairs so that if the most extraordinary events happen, that you’re s:ll around to play the next day.“
-‐-‐ Warren Buffeg
3. How will you compound?
14
Learning from your own stuff Learn from others’ stuff – pictures of two big books
What do you need to decide to be investor?
17
1. What is your style?
2. Are you prepared for the piIalls?
3. How will you compound?
Repeat un)l rich.
A par;ng thought…
18
“Never give up searching for the job that you’re passionate about. Try to find the job you’d have if you were independently rich. Forget about the pay. When you’re associa:ng with the people that you love, doing what you love, it doesn’t get any beger than that.”
-‐-‐ Warren BuffeF