The Meb Faber Show
About This Show
Ready to grow your wealth through smarter investing decisions? With The Meb Faber Show, bestselling author, entrepreneur, and investment fund manager, Meb Faber, brings you insights on today’s markets and the art of investing.
Featuring some of the top investment professionals in the world as his guests, Meb will help you interpret global equity, bond, and commodity markets just like the pros. Whether it’s smart beta, trend following, value investing, or any other timely market topic, each week you’ll hear real market wisdom from the smartest minds in investing today. Better investing starts here.
For more information on Meb, please visit MebFaber.com. For more on Cambria Investment Management, visit CambriaInvestments.com. And to learn about Cambria’s suite of ETFs and other investment offerings, please visit CambriaFunds.com.
Most Recent Episode
#31 - Mark Yusko - "Asset Allocation Matters Most"
4 days ago
Episode 31 starts with some background information on Mark. After some early-career twists, he got his “big break” – working for his alma mater, Notre Dame, in its endowment department. Several years later, The University of North Carolina came calling, and Mark took the helm for UNC’s investments. Eventually, he moved on to private wealth with his current group, Morgan Creek. Given the heavy institutional background, Meb asks about how endowments invest. Mark tells us that every large pool of capital manages its money the same way – investing in stocks, bonds, currencies, and commodities. That’s it – though how you own those assets might change. Yet despite different wrappings, they all have the same risk factors. This leads Mark to focus on asset allocation, as “asset allocation matters most.” The conversation turns toward money managers (Mark uses various money managers at Morgan Creek). Meb asks how a retail investor can get access to the truly great money managers. It turns out, it’s very difficult. But Mark says you don’t necessarily want the well-known superstars who’ve been in the limelight for 20 years. You want to get onboard with them far earlier in their careers when no one is looking, before they become famous. As to how you actually find them, Mark says you have to “kiss a lot of frogs.” Meb follows up with an interesting question – forget about how to find great money managers…how do you know when it’s time to get rid of one? After all, it can be hard to tell when a manager’s investing system is flawed versus when he/she might simply be distracted by personal issues, or just going through a rough patch. Mark’s answer? Stop focusing on performance. Instead, focus on the other three P’s: 1) people 2) process, and 3) philosophy. If all you’re doing is looking at/chasing performance, chances are you’re going to underperform. So expand your analysis. Meb adds that this focus on performance isn’t limited to retail investors – institutions do this too. Mark agrees, having had personal experience with this. His group was hired, fired, re-hired, and so on, as one particular client chased performance. The guys then switch to venture capital, a huge area for outperformance. Institutional investors have the advantage here – the “illiquidity premium” as Mark calls it. Meb asks how retail investors can try to take part in this space. Mark tells us t