How to Avoid Strikeouts on the Diamond or in the Market - The Moneyball Approach to New Age Portfolio Management
Thursday, September 23, 2021
2:00 PM EDT | 11:00 AM PDT
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The success of Moneyball, made famous by the Oakland A’s, could only be achieved by thinking differently, re-inventing a player’s worth and focusing on value. Ultimately, it relied on facts and fundamentals and disregarded the unknowable future.
Despite its reference to money management, however, such an approach has largely been ignored by traditional asset managers who continue to look for an edge. Overly confident in their ability to pick winners, these managers assume they have some predictive ability and knowledge of the future. And clearly, no one has that. Worse, this outdated approach fuels a portfolio mispricing risk that can significantly erode returns over time.
We believe that instead of trying to pick winners, portfolio managers should simply avoid the losers. Like the A’s, they should focus on the numbers—the known information—to avoid strikeouts in the market or on the baseball diamond. This presentation will cover:
- How to apply a Moneyball approach to investing and portfolio management.
- How traditional portfolio managers are exacerbating a portfolio mispricing risk caused by irrational human behavior.
- And, how to get your clients to focus on the right question, the question very few are asking: How can we avoid the losers?
Pending Approval for 1 hour CE:
CFP®, CFA®, CPWA®, CIMA®, CIMC®, RMA®, WMCP®, RICP®, CHFC®, FSCP®, CLU®, CHSNC®,
CAP®. The CFP Board® accepts the LIVE program for one hour of CE credit towards the CFP® certification. If you provide the required information during the webinar registration process and stay for the entire session we will report your attendance to these organizations. Investments & Wealth Institute® accepts this webinar for 1 hour of CE credit towards the CIMA®, CPWA®, CIMC®, and RMA® certifications. If you provide the required information during the webinar registration process and stay for the entire LIVE event we will report your attendance to IWI. If you watch the ON-DEMAND event please email us at [email protected] for the IWI® webinar ID to self-report your attendance.
Andy Kern, PhD
Senior Portfolio Manager
New Age Alpha
Andy serves as senior portfolio manager of New Age Alpha Long Short. He is also responsible for New Age Alpha's research initiatives, including historical and ongoing analysis of the H-FactorTM investment methodology. This involves adapting, testing and applying findings from academic finance literature to continually improve the company’s strategies.
Prior to New Age Alpha, Andy was Vice President at Guggenheim Transparent Value. His research helped refine and improve the firm’s proprietary “Required Business Performance (RBP)” investment process by incorporating innovative econometric techniques. He also assisted with marketing efforts, supported the external sales force, and produced content for investor and external stakeholder communications.
Andy served on the faculty of the Trulaske College of Business at the University of Missouri and his research has been published in the Journal of Financial and Quantitative Analysis. He holds an MBA and PhD in finance from the University of Missouri.
Co-Founder and Chief Investment Officer
New Age Alpha
Innovator and entrepreneur, Julian built and sold his first company at age 29 to Ernst & Young. Since then he has built and managed an investment bank, asset management firm, broker-dealer and private equity fund, investing in healthcare, financial services, media and entertainment.
As Chief Investment Officer Julian leads New Age Alpha’s investment process, business development, marketing and distribution efforts across all products and investor groups.
This parallels his previous role at Transparent Value, where, he led the product evangelism, marketing and distribution efforts through the broker-dealer and wirehouse channels, as well as the full range of asset management intermediaries and institutional investors.
Julian is passionately driven by his love for nature and appreciates the responsibility to preserve it for future generations. Julian built and owns, Kubili House, a luxury safari lodge in South Africa’s Greater Kruger National Park. A core belief that he had from the conception of Kubili House is that visitors want their travel dollars to serve a greater purpose; people want to invest in a business that gives back. They want to make a difference. He believes that aligning the interests of owners, tourists and local communities is a key to sustaining our natural resources. ‘Think differently, make the difference’ is much more than a slogan it’s how he thinks and it’s at the heart of his mission to preserve these natural wonders for future generations to enjoy.
The success of Kubili serves as the foundation of New Age Alpha’s Impact Investing Solutions, providing investors a path to directly impact the lives of communities living in and around South Africa’s Greater Kruger National Park.