Rob Arnott
The Disruptor
Contrarian and drawn to the edge; challenges the settled answer.
Rob Arnott reads as The Disruptor because he reopened a question the entire indexing industry had stopped asking, why weight by market cap at all. Rather than refining existing logic, he exposed its untested assumption, built new methodology through hypothesis-first scientific discipline, and institutionalised the result as Fundamental Indexing through Research Affiliates.
“Community. And that's all I was saying. You get spreads in valuation, whether it's between high and low quality stocks or between growth and value stocks or between high beta and low beta stocks. When those spreads become unusually wide, you have an investment opportunity. Shift your emphasis towards the cheaper trade.”
“The quantitative skills that are used in finance are actually pretty straightforward. You don't need differential equations. Need string theory So, really, arcane math is utterly unnecessary. Being good at math helps Big picture helps.”
“Very, very simple. Private sector is a little bit Darwinian if you aren't working hard, you get sacked. If the company's not doing well, you can get sacked. If the company has stupid products, they won't prosper. Government, if you're not working hard, they'll hire somebody else to work alongside you.”
“Well, right now we're testing the lows for value relative to growth that were achieved in summer of 2020. Summer of 2020, using FAMA-French methodology, growth was nine times the price of value.”
Masters in Business: “Focusing on Growth (Not Market Cap)”
LISTEN AT THE SOURCE ↗THE RECORD IS CHECKABLE