Deconstructing Alpha

I think this Podcast is going to blow you away.  I was left speechless. 

The implications of AI are truly outstanding.  And we don’t know of any investment firm that is more of the forefront of this revolution than Alger. 

You are in for a treat, so tune in for a fascinating ride.

I have been waiting a long time to host a quality podcast about value investing.  As most of you know, the investment world has been dominated by growth and technology themes over the last 2 years.  But how does that leave the rest of the investable universe?  Value stocks, small stocks, international stocks, and especially emerging markets stocks have been left behind by a very narrow thematic flow of capital to just seven stocks.  Are value stocks and value themes now a bargain here?  Is international investing still relevant?  And where can investors look for future outsized returns? These are just a few of the topics that we will uncover.

To answer these questions, I am honored to have had the opportunity to interview the value investing icon Rich Pzena.  Rich is the founder of Pzena Investment Management, is an icon in value investing circles, and is a wealth of wisdom and personality.

Go sit in traffic, walk the dog, or just take a breather and listen in to this engaging interview. 

Welcome to 2024!  Feeling optimistic?  The economy seems to be dieseling along, asset prices are high, and the Fed is likely to cut rates.  What’s not to like?

We kick off the year with a roadmap tour the opportunities and risks ahead for 2024 with Rob Almeida, Global Strategist for MFS Investments.

Tune in and buckle up, let’s go for a ride.

Did you know that there are three types of non-investment grade (credit) bonds in the marketplace today?  When investors think about credit bonds, they are usually referring to just high-yield bonds.  Post the Great Financial Crisis (GFC) though, the non-investment grade bond market has changed and is no longer dominated by just high-yield bonds.  Investors today also have the opportunity to invest in floating rate notes/leveraged loans, as well as private credit.   

With credit bonds currently yielding upwards of 8% or more yield, many investors are wondering where is the risk?  Is the risk in high yield bonds, floating rate notes, or private debt?   

Today’s guest in Bryan Krug, CFA, portfolio manager of the Artisan High Income Strategy, the Artisan Credit Opportunities Strategy, and the Artisan Floating Rate Strategy. 

Tune in to this in-depth interview with Bryan Krug of Artisan Funds, who proves once again, that delivering alpha requires deep knowledge, an understanding of nuances, and that execution matters. 

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Many of you may have never heard of the Rainier International Discovery Fund.  However, Henrik Strabo, the founder and lead portfolio manager of this fund has been managing portfolios for over 30 years.  Henrik is steeped in experience and joins us to discuss how changes around the world can lead to winning investments, and to losers. 

Surprises often scare investors.  However, when changes occur, this can often mean opportunities for some businesses, and losses for others. 

Today, we have our fair share of change to deal with.  Think, onshoring, energy transition, AI, political changes, Fed policy, inflation, interest rates, and so on.  And sweeping changes appear to be accelerating, or at the very least a constant.  

When the outlook looks the most cloudy - full of unpredictable change - is often when the best opportunities can arise. So, tune in to hear more about how to capitalize on change, or more importantly, how to avoid the losers.

For the twelve years following The Great Financial Crisis, money market yields had remained close to 0%, and bond yields were consequently repressed.  However, today the entire bond spectrum appears to exhibit different characteristics than when the Fed Funds Rate was 0%.  Instead of low inflation, we have inflation higher for longer.  We currently have an inverted yield curve, where short-term bonds offer higher yields than longer dated bonds.  Further, we have whole segments of the bond market that are offering yields in the 7%+ range.   

To help uncover all that needs to be known on this subject right now, I interview Carl Kaufman of Osterweis funds.  Carl is the most experienced bond manager that I know of when it comes to all things income.  Many of you might have listened to him before on this podcast, but those that haven’t, you are in for a treat. 

If you like to earn income from your bonds, this might be something you want to listen to.  So, pod up and tune in to Carl Kaufman of Osterweis funds.   

In this episode we discuss managing resilient equity portfolios that can endure multiple market environments with Adam Sues of Yacktman Funds.  For those of you who don’t know Yacktman, they have been a pillar of quality focused equity management for the past 30 years.  

Morningstar might classify Yacktman as a large cap value manager, but they are so much more than this arbitrary moniker.  

Want to know more about achieving more consistent equity returns? Tune in and let’s go inside Yacktman Funds with Adam Sues.

For institutional investors, First Eagle has long been one of the most revered investment firms in the nation. Their mutual funds have been a pillar of strength in Frontier portfolios, providing consistent performance year after year, for decades, even during some of the most difficult of times. If you ask them how they have been able to achieve this track record, their response will likely be “scarcity” and “persistence”.  What does that mean? Tune in for unprecedented access to the secrets of First Eagle’s success.

Welcome to 2023!  Two big questions for the year; where will inflation likely end up, and what is the Fed’s plan?  Let’s find out with Tony Crescenzi of PIMCO, after all PIMCO might know a thing or two about inflation and the Fed. 

So here we are, 9 months into a market decline.  What now?  In this interview we discuss what is likely to happen to the economy and earnings, what is next for capital markets, and where is the opportunity. 

Who doesn’t want to know that?  I don’t know anyone that can deconstruct it better than Brad Neuman.