Show Notes
Fundamental stock picking is losing ground to systematic investing. But does that mean traditional active management is dead?
Dr David Allen, Head of Long Short Strategies and Co-Head of Research at Plato Investment Management, joins Ally to explain how systematic managers are using data, technology and AI to find opportunities across thousands of companies.
He takes us inside Plato's investment process, including the 154 red flags the team uses to identify short opportunities.
Plus, David explains why diversification can improve returns when systematic strategies struggle, and the one metric he believes every adviser should use when assessing quantitative managers.
Chapters: 00:00 Is Fundamental Investing Dead? 01:52 Why Traditional Stock Picking Is Changing 04:20 Inside the Black Box of Systematic Investing 07:25 Plato's 154 Red Flags for Identifying Risky Stocks 13:09 Separating Genuine Investment Signals From Noise 17:06 How Plato Uses AI to Analyse Markets 19:29 The Red Flags Emerging in Markets Today 25:34 Diversification, Performance and Choosing a Quant Manager
Stocks and Funds Mentioned:
Plato Global Alpha Fund, Echo IQ (ASX: EIQ), Allbirds (NASDAQ: BIRD), Meta Platforms (NASDAQ: META), DroneShield (ASX: DRO), Cettire (ASX: CTT), Tesla (NASDAQ: TSLA), Commonwealth Bank of Australia (ASX: CBA), GQG Partners (ASX: GQG), IBM (NYSE: IBM)
CPD Points: This episode is accredited by the Financial Advice Association of Australia (FAAA). Complete the CPD quiz ___ to claim your points.
Knowledge Requirements: Managed Investments (0.50 hour)
Legislated CPD Area: Technical Competence (0.50 hour)
———
Want more Basis Points?
Sign up to the Basis Points email Join the conversation on LinkedIn Watch all episodes in full and relive some of our favourite clips on YouTube
———
Basis Points is a product of Equity Mates Media.
This podcast is intended for education and entertainment purposes. Any advice is general advice only, and has not taken into account your personal financial circumstances, needs or objectives. Before acting on general advice, you should consider if it is relevant to your needs and read the relevant Product Disclosure Statement. And if you are unsure, please speak to a financial professional.
Equity Mates Media operates under Australian Financial Services Licence 540697. Hosted on Acast. See acast.com/privacy for more information.
More from Basis Points
China's economy is splitting in two, and the investment opportunities aren't necessarily where you'd expect.
It was once a given that investing across a variety of asset classes, meant you were diversified.
Jason Entwistle is worried. Australian advisers have one of the highest AI adoption rates in the world at a time when there are so many "shiny new toys” coming out.
The world’s biggest technology companies are burning through their once-abundant cash reserves to fund the AI arms race.
What separates advice practices that scale well from those that get stuck?