Below is Part 4 of PM Jar’s interview with Howard Marks, the co-founder and chairman of Oaktree Capital Management, on portfolio management. Part 4: The Art of Transforming Symmetry into Asymmetry “If tactical decisions like concentration, diversification, and leverage are symmetrical two-way swords, then where does asymmetry come from? Asymmetry comes from alpha, from superior […]
Below is Part 3 of PM Jar’s interview with Howard Marks, the co-founder and chairman of Oaktree Capital Management, on portfolio management. Part 3: The Intertwining Debate of Diversification and Concentration “Diversification in itself does not add or subtract value, it only affects the probabilities.” PM Jar: During times when you are overwhelmed by opportunities, […]
Below is Part 2 of PM Jar’s interview with Howard Marks, the co-founder and chairman of Oaktree Capital Management. In the excerpts below, Marks discusses his approach to the art of investing: transforming symmetrical inputs into asymmetric returns. Be sure to read Part 1: An Idea of What Is Enough. Part 2: Real World Considerations “You shouldn’t […]
“Investing is an art form. Take the hundred greatest painters, their paintings look nothing alike. The definition of great is not uniform.” When asked about the art on the walls, he answers he is not a collector, merely an admirer. There’s no corner office with custom or museum-quality furniture. There’s no glaring display of power […]
I’ve always found it curious why talent turns over so frequently at investment firms (at least in hedge fund land). Investing is a judgment-oriented business, and team turnover can be highly disruptive to the investment process. To retain talent, most people throw money at the problem. The video below will show you why that doesn’t […]
The following excerpts are derived from Jack Schwager’s interview with Bill Lipschutz in The New Market Wizards. Lipschutz helped build and ran Salomon’s currency desk for many years – here is a 2006 EuroMoney Article with additional background on Bill Lipschutz. There are number of worthwhile portfolio management tidbits here, mainly the relationship between making mistakes, […]
Below are numerous psychological gems extracted from Chapter 1 of More Than You Know by Michael Mauboussin. Also be sure to check out his thoughts on Process Over Outcome. Psychology, Sizing “The behavioral issue of overconfidence comes into play here. Research suggests that people are too confident in their own abilities and predictions. As a […]