YouSaid · the spoken record

Ashish Shah

lines on the record: 69
first: 2024-04-19
most recent: 2024-04-19
sittings or episodes: 1
sources: podcast

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“I think that what's changed this time around is that real rates and nominal rates are high enough that they are slowing the economy down, but there's enough offsetting fiscal impulse within the US economy at least that you have growth continuing on. And so you have this interesting situation where inflation has been coming down, right? It may be not in a straight line and certainly the last couple of data points that we've had haven't really pleased the market in terms of the Fed being able to ease aggressively, but inflation has come down from its peak. But growth continues, and I think that for fixing income and the income piece, you're better off in the front end. Now, if you look at value,”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it's also very unusual to see an inversion like this and not see a material slowdown in growth, right? Part of the reason why twelve months ago people were forecasting with high probability that we'd be in a recession is because historically yield curve inversions really kind of announce that we're slowing down.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so from a long term perspective, this seems trite to say, but fixing income is about income. And so the starting point is evaluating income, evaluating the likelihood that you actually can capture and hang on to the income because a lot of the credit instruments, if you have losses in your portfolio, that gives up the income. So the starting point is income, shape of curves matter. So spread curves historically most of the time are steep. Interest rate curves most of the time are steep. That happens not to be the case today, right?”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Your process so that when your style has gone out of favor, that you know when to double down, right? That you know when to lean in and you have confidence to do it. And so that's a lot of what investment process design is, is how do you stick with the long-term bets? How do you tilt out and tilt in rather than being kind of and reacting, being backfooted or reacting that you're actually front footed and you're able to kind of shallow out the drawdowns and lean into the opportunities.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so that's where doing research and developing an investment process are absolutely critical, right? Your investment process makes it so that when there might be a challenge that use other tools like momentum, like risk analytics to be able to not question whether your thesis is out there, but actually reduce your risk before the market has questioned your thesis, right? So nothing may have changed, but if the market is changing the pricing of that risk, right, it matters to your portfolio. So I think that first point is really critical, which is you need to have things that actually diversify you out of that long term, right? And they have to kind of take place before you've already lost money. I think that the second thing is that you want to be doing the research and developing.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“If you have an environment where your core thesis, whatever it is you do, whether it's investing in growth, investing in companies that are lined up with a long-term trend like technology, you're going to be challenged, right? And so the question is, how do you construct portfolios? How do you look out for the challenges that are going to cause your clients to fire you, right? And if you can tilt out of whatever it is that works over the long haul in those periods of time when maybe it's gotten crowded, over extended, you're going to be much more successful in capturing those periods of when the opportunity is the best, i.e. buying low and selling high rather than having to sell low because your investors essentially have lost patience.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I think that the most successful investors, the way they invest is they decide what works, what they believe works over time, and they're simply trying to stick with it. And so what is the worry about? The worry is about, first of all, is that thing that I believe works over the long haul, to what extent is it wrong? Because where I'm really going to underperform is if I get a long-term trend wrong. And so you should be constantly challenging your core thesis. But inside of that, I think it's really critical to be humble and to understand that that core thesis, you have to stick with it over time. And so the other aspect of this is, okay, what can you do to make it so that you stick with your core thesis?”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“And frankly, what end advisors want, right, for their clients and what we as an asset manager have to deliver is changing very rapidly. Everyone wants mass customization, but delivered with the quality of institutional asset management. And I think it's really requires innovation and technology in order to do that well. And frankly, that's why I joined Goldman Sachs, because I felt that you needed the scale resources that come with a firm like Goldman Sachs in the analytics, in the ability to really invest in technology and in data if we were going to succeed in going to market in the RIA and wirehouse community and delivering to institutional quality portfolios. That really meets the individual needs of every individual at minimum sizes of a hundred thousand dollars.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that culture defines success in investing and particularly in investing in organizations that you have to set an investment culture where your investors first of all are very aligned to delivering performance and the type of performance that's going to end up making your clients happy. I think that you need to have a culture where people collaborate. If you don't, it's going to be really tough to have scaled performance, right? You can succeed in one area, but you're only going to be as good and have as much insight as that any one small group, which is going to limit your success if you try to do other things. And the final point, exactly the one you brought up, which is around innovation. The world is moving really rapidly. The way you do research, the way you put together portfolios, the way you execute in the market has changed.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“So it ended up leading to both, right? It ended up leading to venture investments, but in large part, most of that effort was really around building organizational readiness to innovate. And a lot of the things that spun out of that effort really kind of continue to impact that organization today in terms of the forward lean when it comes to innovation and the overall operating stack that allows them to be able to, again, allow the portfolio managers to focus on markets and yet to be able to deliver scalable solutions.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so when I go back to that period of time, I think there were four of us at Alliance Burn scene that realized there was something materially changing in the market, which was FinTech, was really changing and accelerate the changes within the broader asset management ecosystem. And so myself and Vicki Wally, Matt Bass, Carl Spruls, CTO, decided that in order to get our organization ready, that we needed to build that muscle, not just at the top down as an initiative, but actually as a bottom-up engagement tool for the organization. And so we tackled topics like robo advisors, crypto, blockchain within that construct as a way to educate the organization much more rapidly and get people leaning forward into innovation.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it ends up being cultural. I think that investing requires focus and very similar to a lot of organizations are built around these teams that are small and agile, right? Because you have to adapt to the market. Sure. But how do you pull those teams together into larger organizations to be able to do bigger things? And I think, you know, that's where the innovation experience that I had within technology and within software really came in handy because I not only understood markets and investment process, but I was able to take kind of how do you invest at scale? How do you bring technology as a force multiplier for your investors so that your investors can focus, they can be and operate in smaller teams, make decisions quickly, but at the same time that you can build large scale customization on behalf of your clients.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, those are absolutely critical elements, and it's amazing how as the asset management industry has consolidated and these investment organizations have grown, how difficult it is for those organizations to pivot into those things.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“What I brought to the table was an ability to kind of bring the team together to operate to singular set of incentives, i.e. delivering performance, right? Not being distracted by things, and to be able to do that at scale. I brought the hedge fund skills, the derivative skills that you kind of learn in operating in hedge fund and propdes to that traditional asset management. And what I learned was how do you construct portfolios in a way where you can stick with your bets over long haul, but at size, right, where you are the market. And so you don't have the ability to kind of increase risk, decrease risk, but rather that you are building your portfolio so you can stick with the risks that you think makes sense over time.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I was brought in by Doug Peoples and Peter Krauss to lead the credit organization. And I think that, you know, when I think back to that period of time, what they were trying to accomplish is that they had really strong credit capabilities, but they needed to unify a team and they needed to build an investment process that was going to be scalable. They had some of the most talented portfolio managers and kind of investors in the world. They really understood how to construct portfolios, which were things that I learned from those portfolio managers. Portfolio managers like Gershon Distenfeld.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so once I left there because I saw that the industry needed greater level of transparency and financial discipline. So I went on to found SageLogix, which was really meant to be, it was a software ASP in the telecom space focused on telecom providers. And my thesis was, hey, if these organizations don't get their head around their cost structure, that they're all going to go bankrupt. Reality is I should have come back to Wall Street and express that view in 2001 because that's essentially what ended up happening.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“So you go back to the late 90s and the internet was all the rage. I had a brother-in-law that had joined a company called Level 3 Communications that was literally building out the internet, calls me one day. He's like, hey, we're looking for people. They have the following profile. I think you meet it. Come visit and meet with our folks. And I was like, this is my opportunity to really build out my skill sets, right? I was head of a prop trading desk at Bankers Trust. I had a series of skill sets, but I was really interested in kind of going to business school, but without going to business school, I saw this as a fantastic opportunity to do that. So I would go out, I learn the telecom industry. I work 120 hour weeks, helping level three raise money, build out its business plan. And I learned a tremendous amount of time about business, about startups, about”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“So I had joined that organization right after 911. And right after I'd come back to New York City, and it was a fantastic experience, the markets were all over the place, but it was a very small organization. There were five or six of us, and we were spread all across the world. It was nice because I got to work with Greg Coffee, who was one of the partners there and obviously has gone on to fantastic things. But I basically sat in a cubicle by myself trying to come up with investment ideas and realized that that is not my best place. My performance wasn't the best, but I learned a lot from that experience in knowing that I'm very much a team player and I work well in kind of mid to larger size organizations.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, I had no plan. This whole world was completely new to me, but I knew two things. I knew I loved markets. I'd worked for Jeremy Siegel as a research assistant when I was at Wharton. And that really kind of embedded in me this love of macro and love of markets And the second thing was, I knew I didn't want to go into an investment banking track. I wanted something where I could work on interesting problems that would allow me to cast the career that I wanted without being kind of shoed into this analyst, associate kind of fixed career track.”
2024-04-19 · Masters in Business · Goldman Sachs Ashish Shah on Reading the Market With AI and Technology · IDENTIFIED FROM THE TRANSCRIPT · source