We all often hear about the importance of sentiment in investing. But how to use it can be elusive. This week we are joined by someone who has done the empirical work and developed models that use sentiment to build real world investment strategies. 

We speak with Ray Micaletti of Relative Sentiment Technologies. Ray has done extensive research on the use of relative sentiment in investment strategies and has published several research papers on the topic, including "Want Smart Beta? Follow the Smart Money: Market and Factor Timing Using Relative Sentiment". He also runs an ETF using his strategies. 

We discuss what relative sentiment is and why it works and look at it through the framework commonly used to evaluate investment factors to see how it holds up. We also cover how sentiment is measured, using sentiment in bonds and gold and a lot more. 

We hope you enjoy the discussion. 

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In this episode we talk fund selection with Joe Wiggins, author of the new book "The Intelligent Fund Investor: Practical steps for better results in active and passive funds". We take a deep dive into the process of selecting funds and the many pitfalls' investors face along the way. We discuss the dangers of investing with star managers, what we can and can't learn from historical performance, the key criteria investors should consider when looking for funds and a lot more.

We hope you enjoy the discussion. 

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With the recent release of the Netflix documentary "Madoff: The Monster of Wall Street," many of us have been learning more of the details behind the scandal. 

This week, are are joined by Andrew Cohen, who participated in the documentary and was both a trader on the legitimate side of Madoff's business and a victim of the Ponzi scheme. Andrew gives us a inside look at what it was like to work in the Madoff organization and takes us through the timeline of events from when he started there to when the Ponzi scheme was uncovered. We also talk about his biggest personal lessons from the experience and what he thinks other investors can learn from it. 

We hope you enjoy the discussion. 

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In this episode, we speak with Smead Capital CEO and Portfolio Manager Cole Smead. Smead Capital has built a strong long-term record using a unique approach to value investing. We take a deep dive into their approach, the key metrics they use and how they think about portfolio construction. We also talk about his favorite investing books, discuss the most important lessons he thinks investors can learn from Warren Buffett and get his take on inflation and how it impacts their process. 

We hope you enjoy the discussion. 

To answer the question mentioned in the podcast, please go to our YouTube Excess Returns channel, like the video and then obtain the question from the description below the video. 

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In this episode, we speak with Andy Berkin, Head of Research at Bridgeway and co-author of "Your Complete Guide to Factor Investing: The Way Smart Money Invests Today." We cover a wide range of factor investing topics, including the future of value investing, composites vs. individual metrics, the different approaches to multi-factor investing and factor timing. We also talk about how his background in Physics has helped him in his investing career, how investors should look at inflation and a lot more.

We hope you enjoy the discussion. 

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2022 was a great year for Excess Returns. We were able to interview some of the smartest people we know and more than doubled our audience as a result of the many great insights our guests have provided and the support of our loyal listeners. As has been the case since the beginning of our podcast, we tried to focus on talking to investors who have had long-term track records of success, and we tried to extract the major lessons all of us can learn from them. As we start the new year, we wanted to take a look back at 2022 and highlight some of the most important lessons we have learned from the interviews we conducted during the year.   

Here are the biggest lessons we learned from our 5 most popular interviews of 2022.'

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In this episode, we speak with Jeff Muhlenkamp. Jeff is the manager of the Muhlenkamp Fund, which has managed client money for over three decades. We discuss his approach to finding undervalued securities and the portfolio management process he uses to manage the fund. We also cover the fund's unique approach to raising cash based on market conditions, the biggest lessons he learned from his father Ron, who originally founded the firm, and how his military training has helped him in the investing world. 

We hope you enjoy the discussion. 

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The ETF industry is dominated by the big players. They control most of the assets and they have some clear advantages over the smaller companies within the industry in terms of their ability to launch and grow products. We know this first hand since we launched our own value ETF in 2014 (not exactly the best timing for a value strategy by the way) and it eventually didn’t work out.   

But just because big firms control most of the assets doesn’t mean they offer the most innovative products. Some of the most interesting products we have seen have come from smaller shops who are not afraid to challenge the big players. We have been fortunate to interview many of them in the three years since we launched our podcast and so we thought it would be interesting to put them together into a compilation of smaller firms that are helping to launch new products that give all of us a more robust series of choices within the ETF space.   

Here are some of the more interesting ETF companies we have featured on Excess Returns.

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In this episode, we talk Geopolitics with Marko Papic, Chief Strategist at the Clocktower Group.   

We look at his framework for analyzing the geopolitical landscape to cut through the noise and identify the most important events and information. We also take a tour of the current world to look at some of the most important areas investors should be paying attention to including the Ukraine War, what is going on in China, and some areas that are flying under the radar, but could be the source of future conflict.   

We hope you enjoy the discussion.

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In this episode we speak with Buckingham Strategic Wealth's Head of Financial and Economic Research Larry Swedroe. Larry is one of the most prolific producers of quality financial content we know and has committed much of his career to helping to educate investors. We talk to Larry about the current situation in the economy and markets and how long-term investors can make sense of it. We also discuss value investing, ESG, the importance of diversification and a lot more.  

We hope you enjoy the discussion.

ABOUT THE PODCAST

Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.

SEE LATEST EPISODES

https://www.validea.com/excess-returns-podcast

FIND OUT MORE ABOUT VALIDEA

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FOLLOW OUR BLOG

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FIND OUT MORE ABOUT VALIDEA CAPITAL

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FOLLOW JACK

Twitter: https://twitter.com/practicalquant

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FOLLOW JUSTIN

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LinkedIn: https://www.linkedin.com/in/jcarbonneau