Compound Your Face Off

This podcast is sponsored by:

The CFA Institute. The CFA Institute is the global association of investment professionals whose mission is to lead the investment profession by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. CFA Institute serves a global community of investment professionals working to build an investment industry where investors’ interests come first, financial markets function at their best, and economies grow. The Chartered Financial Analyst credential is the most respected and recognized investment management designation in the world.

[00.03:07] – (First question) – A look at Wes’s career in the military

[00.04:34] – Exploring the mindset that is ingrained into Marines

[00.06:54] – Most memorable experience growing up in the mountains of Colorado

[00.07:56] – What experiences in the military have transferred to what Wes sees in the public markets

[00.09:18] – Wes’s first foray into stocks

[00.11:42] – What was the transition into the quantitative investing space

[00.13:56] – How Wes would describe quantitative investing and what the landscape looks like today

[00.18:37] – What is the nature of the strategies Wes uses, like high-frequency and market-making, and what makes them stand out in those

[00.22:24] – What about the human capital arms race in this space and how different firms are attracting the top talent

[00.24:48] – What the approach is for Wes and what his research suggests is the best predictor of performance in stocks

[00.27:03] – Wes’s approach to portfolio construction

[00.34:46] – What is the thinking behind the number of and the size of names in the QVAL ETF

[00.36:46] – Over a 20-year horizon, does Wes pick value or momentum

[00.37:47] – Why the data suggests momentum is the better pick

[00.39:03] – Why price-to-book sucks relative to other value factors

[00.41:22] – What things worry Wes about the future of this strategy

[00.46:06] – How does Wes think about research and what to explore next.

[00.51:32] – Who would Wes have manage his money since he thinks Vanguard is not the best choice

[00.58:28] – Exploring his firm Alpha Architect, how it started and has evolved since its launch

[01:04:03] – Talk about the profile of the right investor

[01:09:42] – How the influx of people to passive investments are impacting the overall market, especially for active investment strategies

[01:14:40] – Wes’s most memorable day of his career both in the military and as an investor

[01:18:46] – Kindest thing anyone has ever done for Wes