159 Billion-Dollar Quant Investor: Stop Only Investing in the S&P500

Video Description

❗ACCESS OPPORTUNITIES EXCLUSIVE TO OOO VIEWERS: https://app.youform.com/forms/e2jpsj4z ❗ Should you invest in the S&P 500, or look for smarter ways to beat the market? Jason Hsu, Co-Founder of Research Affiliates ($159B AUM) and now CIO of Rayliant, explains why simply buying the index or asking “should I invest in ETFs” isn’t enough. In this episode, he breaks down smart beta vs S&P 500, systematic investing, and how factor investing strategies and fundamental indexing can deliver some of the best long-term investment strategies for investors who want to know how to beat the market beyond traditional index funds. Asian markets are less efficient than the US, Jason says. With higher retail speculation, governance risks, and volatility, opportunities open up for quant investing through Asian ETFs, China stock market investing, and emerging markets investing strategies that capture inefficiencies. As CIO of Rayliant, Hsu shows how his team builds factor-based portfolios across China, Japan, Korea, Taiwan, and other emerging markets to turn inefficiency into alpha. We also cover: - How Jason Hsu cofounded Research Affiliates, scaling systematic strategies to manage $159B AUM - Launching the PIMCO All Asset Fund in 2002 and bringing multi-asset investing strategies to retail investors - The origin of smart beta ETFs and why fundamental indexing offers a better alternative to cap-weighted indexes - How the tech bubble exposed flaws in traditional indexing and set the stage for factor investing strategies - Why governance factors and valuation discipline are especially important in emerging markets - Building Rayliant’s smart beta 2.0 products using multi-factor models and machine learning in investing - How factors in investing reveal the “nutrients” of a portfolio for long-term compounding - The difference between risk premia and behavioral biases as drivers of factor returns - Examples of behavioral investing mistakes in Asia and how professionals can capture alpha from retail flows - Why low-frequency quant strategies align better with pension funds and sovereign wealth funds than high-frequency trading (HFT) - The future of quant investing explained: machine learning, non-linear models, and portfolio construction - Jason’s career advice for young professionals navigating the hedge fund and asset management career path 00:00 Intro 01:42 Founding Research Affiliates and early startup days 03:02 Launching the PIMCO All Asset Fund in 2002 04:26 Smart beta ETFs explained and how they started 09:19 Spinning off Rayliant and focus on Asia 10:26 Why Asian markets are less efficient than the US 11:43 Opportunities from inefficiency and alpha in China 13:38 Gambling analogy and retail speculation in Asia 16:53 Liquidity challenges in smaller emerging markets 20:41 Rayliant’s product offerings and smart beta 2.0 20:57 What factors reveal about markets and portfolios 23:34 Risk premia vs behavioral biases in factors 25:39 Governance, valuation, and smart money factors in Asia 28:27 Using machine learning in Rayliant’s strategies 34:05 Can discretionary managers still have edge today 38:39 Poker, luck, and systematic investing advantages 41:00 Future of discretionary managers and pod firms 42:44 Are high-frequency trading firms sustainable long term 46:22 Rayliant’s mission and value to society 50:00 Career advice for young finance professionals 53:14 Closing thoughts