#116 - Sarah Ketterer - Without a Quant Risk Model, I'd Argue an Investment Manager is Completely Blind

48 minutes

In Episode 116, we welcome entrepreneur, CEO, and fund manager, Sarah Ketterer. Meb dives right in, asking about a quote on Causeway’s website which references how the shop blends fundamental and quant analysis. Sarah gives us her approach, which details how the fundamental and quant approaches work together, supporting one another.

Meb pushes for more details. What’s Causeway’s actual process? Does it begin with a quant screen then an analyst takes over, or the other way around?

Sarah tells us it depends on the client. She provides more details, but her feelings about the importance of a quant approach really comes through when she tells us “without a quant risk model, I’d argue an investment manager is completely blind”.

Next, Meb brings up value, and asks what role it plays in Sarah’s approach, and how she sees value today.

Sarah tell us that every strategy Causeway manages has a value emphasis to some degree. The more fundamental, the heavier the value exposure. And the quant-focused funds also have value, but those use momentum as well. This dovetails into a discussion of how not all clients want to sit through deep value cycles. They want returns now, not on a rolling 3-5-year basis. But a great value manager has to think in that time frame. Sarah notes how investors have to be patient with a value approach, yet human nature is not inherently patient.

This bleeds into a discussion of cheap countries and career risk, and the gap between value and growth – Sarah tells us this gap has reached extreme levels. Meb asks about the opportunities she’s seeing. Sarah notes how the opportunities depend on the amount of risk you want to take. For instance, she can find you a good Turkish bank right now, but do you want that level of risk exposure?

There’s way more in this episode – some opportunistic finds in Britain… Why Sarah is “wildly bullish” on China… Sarah’s view on the biggest mistakes investors make regarding risk… And, of course, her most memorable trade.

All this and more in Episode 116.

More episodes from The Meb Faber Show

#251 - Robert Jacobson, Space Advisors - It’s Not Just One Vertical, It’s More Like An Ecosystem With Lots Of Different Dependencies…The High Ground of Space Being The Overarching Theme

In episode 251 we welcome our guest, Robert Jacobson, entrepreneur, advisor, and founder of Space Advisors, a strategic consulting firm for space …

#250 - Kevin Gibbon, Airhouse - We’re The Operations And Logistics Platform For Direct-To-Consumer, Digital-First Brands

In episode 250 we welcome our guest, Kevin Gibbon, co-founder and CEO of Airhouse. In today’s episode, we’re talking about easing the frustration of shipping, operations and logistics for …

#249 - Ben Savage, Clocktower Technology Ventures - Financial Services Has Had A Smaller Share Of Venture Capital Dollars Pointed At It…Since The Inception Of The Venture Capital Industry

In episode 249 we welcome our guest, Ben Savage, Partner at Clocktower Technology Ventures. In today’s episode, we’re diving into VC and innovation …

The Best Investment Writing Volume 4: Anil Rao and Raman Subramanian, MSCI – Game of Homes: Is winter coming for the domestic-equity bias?

Last year we brought listeners the entire volume of The Best Investment Writing Volume 3, in audio format, right here on the podcast. Listeners loved …

#248 - JC Parets, All Star Charts - The Sooner We Can Find Out We’re Wrong The Better…Then We Can Go Move On To Something Else

In episode 248 we welcome our guest, JC Parets, Founder and Chief Strategist of All Star Charts. In today’s episode, we’re talking technical analysis, and what’s going on in the markets …

#247 - David Oates, Curtsy - Our Number One Best Selling Item To-Date Is Active Wear…Lululemon Leggings, Lululemon Shorts, Nike Shorts

In episode 247 we welcome our guest, David Oates, CEO and Co-Founder of Curtsy. In today’s episode, we’re talking about running a company completely designed around making it easy for …

How you can listen to this podcast

You can listen to episodes right here on the website, or if you prefer, in a podcast app. Listening in an app makes it easier to keep track of what you’ve already heard, listen without using your data plan and many other conveniences.

Recommended apps
Start listening to #125 - Tom Barton - The Biggest Problem Investors Have is Things Change...and They Don't Change
1:24:56
Start listening to #125 - Tom Barton - The Biggest Problem Investors Have is Things Change...and They Don't Change
1:24:56