For the last year at @OSAMResearch, we’ve been building.
Excited to share this new post that shares the lessons we've learned. We now believe the future of asset management will be defined by a new category: "custom indexing."
@OSAMResearch When we launched Canvas (canvas.osam.com), we followed the advice of @chetanp to find a small, great set of partners and then stop taking new ones for a long time.
A year ago we did so, partnering with 9 RIA firms, and building out the platform based on their needs...
We had a theory that people would want deeply tailored strategies for individual clients.
Yesterday, we opened our 500th account. 70% of them are totally unique in their settings.
@OSAMResearch@chetanp We are more confident than ever that if you squint and look out 5 years, EVERYONE will manage their index strategies this way: customized for the needs, circumstances, and preferences of the individual.
I think often of what @wolfejosh calls "directional arrows of progress"...
@OSAMResearch@chetanp@wolfejosh Just like commission costs for trading marched towards zero, indexing is marching towards custom indexing: owning your own securities directly, rebalanced following a ruleset that adjusts for your individual tax situation, income needs, risk preferences, and so on.
It must be delivered via cutting edge, web-based software. And it relies on other technology (like zero trading costs, the advance of fractional share trading, and so on).
🚨 a new job that’s a huge opportunity for someone early in their career looking to skip a few steps forward.
The role is a business operations lead for the podcast company. The team has been building behind the scenes and they need help. Here’s the link: coda.io/d/Business-Ope…
Our mission is to capture and share the world’s best knowledge on business and investing.
This means our product itself is a business and investing education that we believe will far surpass even the best graduate degree.
You’ll be working for @DBrychcy, who is the CEO. A bit of history on him below, because he’s effectively hiring for a role that he was once hired into...
1/ The most influential video I've ever seen remains "inventing on principle," by @worrydream.
A well formed principle guides action through time. Here's Brett's principle attached.
I realized today this is why I'm so interested in Unreal Engine 5.
@worrydream 2/ His specific principle (more on finding your own principle shortly) has given me a new lens to see the world: does this enable human creativity?
Unreal Engine 5 will empower creators in fascinating ways. I love any technology that does so. Look at this image:
@worrydream 3/ First, watch Brett's video starting at [2:34] to see what he means by immediate connection to one's creation.
Then watch this incredible video (h/t @eldsjal) on making The Mandalorian using Unreal Engine (I've linked to the moment of the video I mean)
@CliffordAsness Forgetting all data and backtests, I think we must also consider the basics of equity returns:
1. fundamental company growth 2. multiple expansion/contraction 3. return of capital
Historically value has earned its excess return through #2 and a bit of #3
@CliffordAsness #2 only happens if there is real fundamental recovery--the multiple expansion happens in anticipation of real business growth. So it is fair to ask if its different this time and we simply won't see a recovery of value businesses while Microsoft and friends continue to dominate.
@MikeArrieta 2/ In this market, we feel our "integrated equity" approach to valuing indexes is most appropriate.
IE is defined as all capital retained and reinvested by companies, properly adjusted for inflation. It changes slowly.
Relative to Jan 1st, 10-yr expected returns have changed
@MikeArrieta 3/ Small cap value has reached rare territory relative to large growth (broken record, I know). After similar spreads, the forward 10-year return spread for SCV vs. LG has been enormous.
These spreads could widen more. No one knows. But you can drive a truck through the gap.
Last minute, my family is joining me on a work trip to Miami. Anyone have suggestions for the best stuff to do with kids? Food, sights, activities—anything. We are an active group ;) ✈️ ☀️ 🌴 🏊♂️
Thankful to everyone. We are starting to knock out the top recommendations. Beach and Joe’s Stone Crabs tonight with @laurenoshag