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Do you need a 4% allocation in NVDA to outperform the S&P 500?
The passive investing landscape has found a new focal point: NVDA’s 4% weighting in the S&P 500. This raises a pertinent question: Must an Active Manager allocate precisely 4% to NVDA to surpass the S&P 500’s performance? The answer is no. For instance, the E&R U.S. 500 Indexed Model, which allocated only 2.5% to NVDA,…
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Yellow brick road
May 7, 2023 I run a wealth tech company. In late 2019, I decided to shut down a business line that drove a dozen investment management mandates, running USD 25 million in assets, and decided I had to do something different to scale. My objective was to create impact and alpha for global investors but…
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Why is Geoffrey Hinton Worried about AI?
May 2, 2023 I won’t kill myself with worry about the fast pace of machine intelligence, if I was Hinton. We are living intelligence times. This was the objective we were working on for the last 80 years, when McCullough and Pitts designed the Turing-Complete “artificial neurons” in 1943. So why worry about it now? …
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S&P500 can’t forecast
April 29, 2023 As the expectations for AI to change finance forever are increasing, a look back would help Investors understand the limitation of information to forecast. Information may carry all the elements to see the future because it comes from the past, but old information creates new information, old drift creates new drift, so…
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S&P500 Ain’t Passive
April 16, 2023 More than 20 Trillion (T) Dollars are managed passively today. The industry is 25% of the total $100 T investment management industry and has seen an annual growth of 20% since 2007 while the Active industry has grown at 4.4% for the same period at these growth rates. At the current growth…
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ChatGPT to Vox
April 6, 2023 I have thought about machines that assimilate knowledge for more than a decade. For me, assimilation was always an achievable present, not a future imagination. The 2002 film Time Machine based on H.G. Wells’ novel left an indelible mark on me. The hero of the film, an inventor, Alexander Hartdegen communicates with…
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Value underperforms
March 29, 2023 Investing styles nomenclature has a history going back to the 1920s. Though Graham and Dodd never used the phrase, “value investing”, they are credited for the same. The term was coined later to help describe their ideas. The Graham approach was to recommend low-risk entry inexpensive (cheap) stocks. They advocated a systematic…
