YouSaid · the spoken record

John Chisholm

lines on the record: 84
first: 2019-03-08
most recent: 2019-03-08
sittings or episodes: 1
sources: podcast

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“There's a couple of lessons. One is the importance of risk control. I mentioned if you're just betting on a single factor, a single signal, there could be a lot of risk associated with that exposure in a portfolio. You need to manage that risk effectively. That's really important. A second thing is the payoffs to factors can change a lot over time. I think intellectually, I think I and my colleagues appreciated that, but there may be ways to manage the expectation of those payoffs using models that help predict how well value is going to work or quality or momentum is going to work. And so the importance of having such models and incorporating them into your process is something I would love to appreciate, say before 2008, for example.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Of a bigger existing process and firm. Another area, though, might be fintech. So FinTech, the retail investors, I think still are not, sure, fees have come down somewhat. You've got lots of index funds. You've got ATFs, but they're still not served as well in terms of the sort of advice and planning portion as they potentially could be. And so some of these fintech companies, I think there are some potentially disruptive ideas that either we are seeing or some of them may pan out, some of them may not, but that may be an interesting area as well to consider beyond pure investment management.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I'd say if this is something that you're excited in and you're interested in, absolutely, it can still be a tremendously exciting and rewarding career. I do think it's very different than the environment that I faced 30 years ago. When you're entering something that's sort of new and greenfield, there's not a lot of established players. You've got a lot of opportunity. I mean, it could go completely astray, in which case you have to go to plan B, but you've got a lot of opportunity. We've got a more mature industry now. There's lots of established competitors. And so it's harder to come in and have an immediate big impact on a firm or established investment process. It's going to take more work and it's going to take some time. So you've got to be prepared for that. If you want to develop the next great idea, there's still scope to do that, but you're doing it within the context.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Because you can say, okay, here's some things I could work on. I could try to do better. And even if I can't do better, because I am who I am, maybe it's good to have an appreciation for some of my shortcomings.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Here's where everybody else thinks I am. So it's very humbling to find out I had a very high opinion of my strategic thinking and my ability to bring people to a consensus or to pull behind a decision. And some of my colleagues observed that there were aspects of my decision making that they didn't appreciate as much potentially as I would have thought they might have. And so that was humbling, but it was also great because, you know, really hearing other people's honest feedback is something that not everybody gets easily. And this was sort of an anonymous process, so it was a little filtered, but you can sort of see here some areas where I actually could be doing better than I was. An area where I think of as failed is my self-image was miscalibrated relative to where everybody else was. On the plus side, that's a learning opportunity.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, there's probably plenty of areas. One area would be, in many ways, I was kind of lucky. I went to a good school. I was good at taking exams, got a job that we had, aerospace job, but the investment job that turned into a company. And I've been very fortunate in the people I've worked with. So I've always, things have kind of worked been kind of successful. And when it came time to go through the CEO search process, one of the things we did is we took these, I guess you administer different kinds of, they're not just personality exams, but they're sort of inventories of your managerial leadership capabilities. And so when you take one of these, they ask you to rate yourself. And then all your peers and all your colleagues at the company do the same thing. And you can sort of compare. Here's where I think I am. And I'm doing this as a gesture, but I'll explain it in a minute for your audience.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Standard linear statistical model historic with future data. And so I think there's a lot of opportunity there for us to learn and do better in that area. And that kind of stuff is very exciting, both for me and it turns out when you talk to young people coming into the quantitative research area, those are the kinds of things they're excited and working on.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I think I mentioned earlier we're early days with respect to things like machine learning and big data. And I think there's a potential for significant transformation. So you've got this historical division of quant and traditional or fundamental investors where the quants go broad, but maybe not that deep and the traditional investors go very deep, but they may or may not be quite as broad. I think we're at a point where we're going to be able to start going broad and deep because of these kinds of both on the data side and then the ability to interpret the data using machine learning. You have to be very careful with machine learning. It's prone to overfitting. So you've got to build in some safeguards to avoid that. And we're still learning best practices. What are the best techniques to use in driverless cars? People talk about neural nets. Neural nets can easily find the best fit to historic data, but not always guaranteed to outperform.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Had a great way of coming up with these ideas and then sort of making, I mean, I think the quality of his writing over time varied a little bit, but certainly the examples like Ringworld, a Mot in God's Eye that he co-wrote with Jerry Purnell, those are examples of books that... You know, there's a lot of creative thinking and they're entertaining stories as well.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Very predictable. That would be an example of when I'm reading, it's an older series. I think they started writing those around 20 years ago or 18 years ago. But that's an example of the kind of, it's a little bit harder science fiction with a lot of speculative stuff thrown in. It's kind of fun to just think about technology and the impact technology can have in the very long term. And I find certain types of science fiction writers. Another example would be that's a little older would be Larry.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, Alistair, so I've just finished the first one of the series. It's about a six book series and I'm embarked on the second and I'll have to get back to you on If you could do redemption.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Body problem or anything. Yeah, that would be one or redemption. There's a redemption space series that I'm currently reading.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“And then the personal stuff, I would say, would be, I read occasionally, it's not a huge volume nowadays, but consistently over the last 20, 30 years. I'll try to find some science fiction stories. And by science fiction, I mean not fantasy. I guess this is the aerospace engineer in me, not sort of the fantasy version, but the sort of hard science.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“He has his way. He has this way of getting into the detailed situation, learning enough about the milieu and talking to enough people. And then it's both humorous and as you say, horror flank, but it's educational too. You learn a lot. So that would be an example of a nonfiction, a type of nonfiction book.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so I like two things nonfiction books can be great. I mentioned Michael Lewis Lyars Poker. His new book is a book about actually the transfer power between Obama and the fifth column. You know it. Okay. So I've read that. And again, the stories are, it's interesting because...”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“That someone who's coming into the investment industry for the first time, it's a great book to read, or it was certainly at the time a great book to read. So I found that that's another example of something where you can learn a lot, even though it's not technically an investment book.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I think Ben Graham, you know, sort of the value part of that principle. And again, even though value hasn't been great the last 10 years, just the way he thought about how do you make an investment decision, a lot of things came from Ben Graham. I'd say he's important. And then I would say there's people outside of investment outside the investment area, but who have lessons for investing. So Michael Lewis, you know, when he wrote back in the 80s, he wrote Liar's Poker. Sure. That book actually, even though it's not technically an investing book, it's certainly not a textbook, but has a lot of interesting information.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I'd have to say there's really some of my partners at Acadian, some of my co-founders. So Gary Brookstrom, I started my first part-time job in asset management was working with him. And so he was very important. We were a development stage company. So there were lots of idiosyncratic things. We didn't have like an HR department. We didn't have, but Gary was really also really passionate about investing. He's retired now, but he still invests. So I would say Gary, my other colleague Ron Frasier, who is a portfolio manager at Putnam before he came to join us as one of the four co-founders, Ron is a true gentleman and investment professional, taught me a lot about how to treat other people. And so I would say that would be another one of the folks that I learned a lot from when I first came into the business.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I like that. I like that description. And it was probably, yeah, I was probably, I had an 84 is already used. It was probably like a 1988. I don't even know, but probably 1980 or something like that, or 79. That's interesting.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm not a car guy, but I do remember it was a Mazda GLC. It cost about $700, $800. And it ran about like it cost $700 or $800. This is probably 1984-ish. It had a nice little stick shift in the”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“So Exactly. So that's the beauty of it, I think, is you get a great exercise. It's a lot of fun. It's very social, and you don't kill yourself. It's not like I play basketball typically once a week as well. And I'll tell you after ACL's pops' pops.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“So, same, you know, I actually went to high school at Bronx Science in the Bronx here. And it wasn't on the ultimate team, but that's where I started playing with some of the guys on the team. And then I played a little bit in college, played after college. And, you know, now there's in Boston area, there's an over 40 league. I still get a chance to go out and play every now and then.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“But it may be something that your listing audience maybe doesn't appreciate as much. And the other thing, maybe it's something that's maybe not really directly work related is two things in terms of leisure activities. I love Ultimate Frisbee. Ultimate Frisbee is a great sport. I don't know if you know what it is”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I love asset management. That's probably, and I love investing. That's probably not something that some of the people who work with me know pretty well.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Wow. That's a tough one. And, you know, it's funny because I know you gave me the questions in advance. So that's the one where I looked at it and I was like, I don't know if I have anything there. And I skipped it. So I did not pre-deal. I didn't think about. I did not come up with an answer to that particular question. I would say a couple of things. One is...”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“And there's folks at Harvard, and generally what they come up with is that you can have a greater level of passive management than we have today and still get the social benefits, if you will, of the price discovery process.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't think we're there yet in terms. I do believe, look, there's a value to price discovery if you had 100% of every, you know, all assets were at passively managed, you wouldn't have a mechanism for price discovery. But you don't need 70% of assets active management to get the price discovery process to work. I think there's been various academic work on this.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that we've seen that trend, and there's a good reason for it, right? Investors should be looking for what's the, if I want to get a certain return and risk stream, what's the least expensive way for me to do that? And it's been great for investors, the fact that there's been pricing pressure on the asset management side of the business. That's actually a great thing for investors, right? It forces the investment managers to be more efficient. It pushes the overpriced products away from, you know, makes them less viable. And it allows strategies that can be run inexpensively but still provide value to do well in the marketplace. So great for investors, tougher for asset managers. It's not as easy to make money now as asset manager as it was 10 or 15 years ago. We've seen margins for the asset management business get squeezed a little bit over the last few years.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I think actually Q4 was just for us, for Acadia in particular, not a grade quarter. And it was partly that actually value in some markets didn't pay off well, but it was also partly smaller companies in general, especially in the US and in emerging markets, did poorly relative to larger companies. And we have in our portfolios a fair amount of exposure to smaller and medium-sized companies because typically that's where we see the general inefficiencies, any kind of factor. We see those as being greater in that area than they are in the very large cap companies. So what hurt us in the fourth quarter, a little bit of value, but primarily just the risk of small versus large biting us.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Gave a little bit of a tailwind to growth over that period. I think we've pretty much worked off all that dispersion or rather the tightening of the dispersion. So we're back to more normal levels of dispersion now. At Acadian, we'd expect going forward that you're more likely to have at some point soon, whether soon as next month, next year, but not in six or seven years, sometimes sooner than that. We expect to see value reassert itself. And so we continue to have some component of our factors focused on valuation”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Of why you see in the long term value working effectively. What's happened the last 10 years, that's interesting, is two things. One is that actually there were some companies that actually did grow their earnings at really high rates for a long time. So typically people think of the internet services, you know, the Googles and Amazon's and so on. Those companies have been tremendously successful for a while, albeit you're starting to see a few cracks in those growth rates now for some of these companies. And the other thing that's happened is just a general repricing within valuation. So you had a certain level of dispersion where value was so successful from, say, 2001 to 2007 that the dispersion of valuation multiples shrank. And as a result, the expensive companies weren't really that much more expensive than the slower growing inexpensive companies.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“So, this goes back to how do we come up with these signals. So, for example, one behavioral error is investors typically are overconfident in their ability to predict future growth rates. So if you're buying growth stocks in the tech bubble and you're looking at companies that are growing their earnings at 20, 25%, 30% or more a year or higher, those companies were trading in some cases at multiples north of 100 on earnings, on current earnings. And if those companies had continued growing their earnings at those very high rates for 15, 20 years, that would have been a reasonable price to pay. What happened is investors didn't realize that, yeah, they can grow their earnings at that rate maybe for one year, three years, four years. It's very hard to do that for 20 years. And so that overconfidence, I think, is one of the key drivers.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, we have a variety. We have some that are pure market neutral, so they're equal sides long short. We have some that are 130, 30, so 130% long, 30% short. And then we have some other variations as well. We have what we call a diversified alpha strategy that is a slightly different ratio as well. But essentially all these strategies, the idea is take advantage of the inefficiencies on the short side and the unattractive companies that we follow.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Varies. So the emerging markets, for example, strategies is closed to new clients if a client withdraws some money. We'll add some money for existing client more capability to invest. But we're closed there. Frontier markets is closed. Emerging markets, small cap is closed. Our non-US small cap, again, subject to some reallocation when there's flows out, is also closed. But we have capacity in areas like global, like our managed volatility strategies, this multi-asset strategy. So what we do is we have a very specific process to measure how much money can we invest and still meet our investment objective in each strategy. And when we hit that number, we close the strategy. If we've got headroom, we tell the clients, here's how much headroom we have, here's how much we expect to be able to add before we have to close this strategy.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Definitely, it's not risk parity because we're not necessarily investing in equal risk portion. It's really, you can think of it more as it's related to this concept that there's certain inefficiencies that operate, not just in equities, but also in other asset classes. But it also relates to specific expertise in these other asset classes, that there's individual drivers saying commodities that are fairly unique there, and you can capture them through these return models. And in turn, get some significant value added from that area, which you don't get in a lot of these so-called alternative risk premium strategies.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“When there's an opportunity, that might be a great fit for them. So there's an element of that. And also, we're doing a number of new things that we haven't been doing before. One of them is we've built a multi-asset strategy. So historically, we've been primarily an equity firm. We have a multi-asset strategy today that has about a little over a year live track record. It's done very well relative to many of its peers. It's a very quantitative approach. It's very consistent with our philosophy. But it invests in equities, fixed income, currency, commodities, and options. And the goal there is to create a return stream that's much more stable than what you get from an equity market beta. That doesn't go up and down every time the market, the equity markets go up and down, but that provides a fairly consistent, typically, for example, one version of the strategy, cash plus five”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. We just like to be maybe a little bit less volatile in terms of our business than that. And that's best for our team. It's best for our clients. And those are really the key considerations typically. Now, sticking the head out part is it is important, I think, to have some degree of name recognition because, A, we want talented people. And if your potential employees don't know you are who you are, then you may not be their first place of employment of choice.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“So, in general, we think it's good to run a little bit below the radar, right? There's elements of, first of all, you can only manage so much money and still add value. So you just have to be careful in managing capacity. And we also, if you're a big name in the industry, you get more press attention. And one way that's good. But in another way, it can also be detrimental depending on what's the type of attention. And a lot of investors, a lot of institutions, especially want managers that are very careful to focus on maintaining their ability to add value for clients by not getting too big. We all know managers that have grown and grown and then at some point they just couldn't add value anymore. They just got too big to add value.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“So every model implicitly has some potential for some degree of overfitting associated with it. We try to guard against that. We have various statistical procedures that we follow and various research procedures we follow to try to avoid that. But it does creep in, no question about that.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Inefficiencies we're capturing with it. A lot more ability to turn that into different kinds of signals. And today, in addition, we've got machine learning, so we can put in all the historical prices and say, okay, machine learning algorithm, what do you think the best predictor of return is based on past price moves? And when you do that, you have to be careful because machine learning is one way to do what's called overfitting a problem, where you have a great solution to the past, but it doesn't work in the future.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“The first step is always is there a, you think of it as a story, it's really a hypothesis of why a particular characteristics related to return. How can it be used to predict returns? What's the inefficiency that we're capturing? And if we have that, then the next step is, okay, now let's spend some time looking at the data and figuring out how do we best create it. We might have an efficiency related to momentum. And back in the 80s, you had some papers about price momentum, and they basically said, okay, the best way to capture price momentum, this is at the time, is sort of a 12-month trailing risk adjusted return, price return. That's your best momentum measure. Since then, a lot of things have changed. We've got a lot better understanding of what drives momentum, you know, what's what are the...”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Rates using the Fed, what's the Fed going to do? That's not as a quant manager. That's not really what we're good at, right? So you're absolutely right. There, what we would do is we would say, let's just look at what's happening with the short-term rates, long-term rates, what's happening with the yield curve. Those can be signals that we use in a model, but we're not trying to really forecast the direction of interest rates per se through Fed statements or through other kinds of actions like that. It just means trying to do where we think our edge is and really trying to focus on that in terms of the things we actively do in the portfolio.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, you know, you're giving us just the right amount of credit here, Barry. You need to play the game that you're good at. And so we don't want to try to do things that we've got other people who are much better at it than we are. And predicting...”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's the risk management piece. You want to anticipate certain risks and build that into your risk controls that you apply to your strategies. The second piece is can you use, are there other signals that help you navigate from a return perspective these kinds of macro events? And for example, volatility itself can be an early warning signal. Every major devaluation of currencies and emerging markets and many market breaks were preceded by periods of rising volatility. Rising volatility also sometimes predicts more benign environments. But the point is if there's a signal there, maybe there's ways to predict these environments. And so the top-down part of what we do tries to look at these macro events or potential macro events and figure out how can we anticipate those and how can we position the portfolios based on that anticipation.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“From NAS allocation perspective. When you do that today, though, what you're doing is you're taking on a lot of interest rate risk because these lower risk companies typically tend to be higher dividend companies, companies that are more sensitive to interest rates. So if you're worried about a rising interest rate environment, your historical risk model wouldn't say constrain your exposure to interest rates, your sensitivity interest rates, but going forward, you might want to do that in a low volatility portfolio so that your volatility doesn't come out much higher than you expect or your return is much lower than you expect if interest rates do in fact continue rising.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“There's two sides of this. One side is what I call risk management, right? So if you can observe some of these risks and you don't observe them in a standard quant risk model because the quant risk models are typically backward looking, they're not forward-looking. So you've got, as a professional investor, think, what are some of these risks that maybe aren't priced into the risk models that are looking at the historical data, but that could impact the portfolio? And let me give you an example of such a risk. One risk is we managed one strategy that's a low volatility equity strategy. So what we're trying to do there is reduce the risk of equity markets. Capweighted benchmark, let's say in the U.S. might have a 12 to 14 vol, and we might want to produce a 10 vol, for example. And what that means is somebody gets the same return that they get on a capweighted benchmark, but they get it with less risk.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“That can be useful in predicting over the short run revenues. You've got to have a lot of infrastructure. You've got to know all the locations. You've got to be able to aggregate that in quasi-real time and satellite coverage at high resolution, at quick success of short time intervals is still expensive. So you've got to figure out, is it worth it to your process to do that? If you only 1% of the portfolio that you have invested in retailers, Maybe it's not really going to move the needle that much, right?”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“It's both. So on the latter point, we have an analyst, and if we have a satellite data project, we have no problem getting somebody a volunteer put their hand up and say, I'd like to work on this. This will be fun, right? So that's true. It's potentially valuable. Now, whether it's actually valuable to any individual in any particular investment firm depends on their style and their process. So let me tell you what I mean by that. If you've got a satellite data, let's say you're getting your parking lot, your infrared images, and you're getting information about parking lots. And if you're following retailers and investing in retailers is a big part of what you do.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's changed a lot, but also the data itself today is much broader than it was. I got started, you got a PE, you got a PB, you got a price to cash flow, you got a market cap, a price, and maybe a dividend yield thrown in. And that was your data. That was like 1984-ish. And then shortly after you started getting analyst data electronically,”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it's both. So no question. The technology and the database access, the power and speed of databases and of software and processing in general has increased tremendously. That makes a lot of things easier to do. Machine learning, those algorithms can be very computationally intensive. The hardware you had 25 years ago, you couldn't do these things today. Today, you can do them on your laptop in some cases. It might take a while, but there's things you can do on your laptop. If not, you go to Amazon Web Services and scale up processing power. And you've got everything you need in terms of the processing computational aspect of things.”
2019-03-08 · Masters in Business · Acadian’s John Chisholm Discusses Investments · IDENTIFIED FROM THE TRANSCRIPT · source