In Part 4 of the Notes from the Field Series, Ben identifies how the natural lines of a tree and shaping the tree to follow those lines over time is a lot like shaping a portfolio.
Diversification is clearly one of the things that matter. Unfortunately, most investors pursue the Meme of diversification! instead of the real thing, and end up with a false sense of security and inefficiency.
Confidence levels for the Social and Behavioral Sciences, Claude Berrou on turbo codes and informational neuroscience, and thermodynamics in far-from-equilibrium systems.
There is no animal more important to the ascendancy of Western Civilization than the horse, and no invention more important than the horse collar. After all nothing shapes history like advances in productivity. Part 3 of Ben’s Notes from the Field series here.
Programmable money, ImageNet: the data that changed AI research, Auto Public Offerings and the paradox of historical knowledge.
Back by popular demand, it’s the Epsilon Theory Mailbag! Today’s edition covers notes from the past two months including “Tell My Horse”, “Post-Fed Follow-Up”, “Notes…
Part 1 of this note highlighted the supremacy of the risk decision in portfolio construction. In this follow-up, Rusty observes that many investors may be assuming that the natural risk of asset classes is “right” for them.
Massively complex complexes of algorithms, AI vs. human performance, the Alpha male brain switch and explaining vs. understanding.
On episode 23 of the Epsilon Theory podcast, we’ve assembled the all-star team — Jeremy Radcliffe (Salient’s President), Rusty Guinn (Salient’s EVP of Asset Management), Neville Crawley (Founder & CEO of Engram Labs) and of course, Dr. Ben Hunt — to discuss whether we are at the inflection point when the proverbial punch bowl is taken away, and, as investors, what we do now.
The question isn’t whether the barge of monetary policy has turned around and embarked on a tightening course — it has — the question is how fast that barge is going to move AND whether or not the market pays more attention to the actual barge movements than what the barge captain says.