Robeco’s Matthias Hanauer - Think Value Investing Is Outdated? Think Again | #561
Today’s guest is Matthias Hanauer, a researcher on Robeco’s Quant Equity Research team. In today’s episode, we discuss the intricacies of value investing, the impact of various factors such as interest rates and market conditions, and the potential for emerging markets and small cap stocks going forward. Matthias highlights his research on the ‘Factor Zoo,’ the integration of machine learning in investment strategies, the evolution of quantitative investing, and more.
Key Points
- Valuation spreads between small and large caps are at levels not seen in over 20 years, suggesting a multi-decade opportunity for investors in small caps.
- Machine learning and AI offer new ways to enhance traditional factor models by capturing complex relationships and interactions in the data.
- Emerging markets have underperformed developed markets largely due to valuation changes rather than fundamental differences, indicating potential for future outperformance if valuations revert to historical norms.
Follow Matthias: Website; X; LinkedIn
Resources: Honey, we shrunk the factor zoo Value investing: "The reports of my death have been greatly exaggerated" Quant chart: Smaller caps, bigger potential? Double delight: Seizing the dual discount in emerging markets Design choices, machine learning, and the cross-section of stock returns
Sponsor: Today's episode is sponsored by YCharts. YCharts enables financial advisors to make smarter investment decisions and better communicate with clients. Get 20% off your initial YCharts Professional subscription when you start your free trial.
Chapters
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| 2:01 | |
| 7:26 | |
| 14:10 | |
| 16:38 | |
| 18:55 | |
| 23:20 | |
| 28:57 | |
| 38:15 |
Transcript
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