38 episodes

Excess Returns is an investing podcast hosted by Jack Forehand and Justin Carbonneau, partners at Validea. Justin and Jack discuss a wide range of investing topics, including factor investing, value investing, momentum investing and behavioral finance, with the goal of helping those who watch and listen become better long term investors, all in twenty minutes or less per episode.

Excess Returns Jack Forehand & Justin Carbonneau

    • Investing
    • 5.0, 9 Ratings

Excess Returns is an investing podcast hosted by Jack Forehand and Justin Carbonneau, partners at Validea. Justin and Jack discuss a wide range of investing topics, including factor investing, value investing, momentum investing and behavioral finance, with the goal of helping those who watch and listen become better long term investors, all in twenty minutes or less per episode.

    Finding Diamonds in the Rough Among Growth Stocks

    Finding Diamonds in the Rough Among Growth Stocks

    Buying expensive stocks has historically been a terrible investing strategy. On average, expensive stocks significantly underperform the market as a whole over time. But despite the poor performance of the group, the absolute best performing individual stocks typically come from within this universe. The difficult part is trying to identify them in advance. In this episode, we look at a quantitative growth strategy developed by Partha Mohanram, a professor at the University of Toronto, and how it seeks to find diamonds in the rough among growth stocks. 

    • 18 min
    The Danger of Learning From Your Mistakes

    The Danger of Learning From Your Mistakes

    The process of learning from your mistakes is an important part of improving yourself over time both as an investor and as a person. But it requires that you learn the right lessons and don’t draw the wrong conclusions from your failures. And sometimes that is easier said than done. In this episode, we talk about some ways that learning from your mistakes can be counterproductive. 

    We discuss: 

    - Why a significant failure early in our careers led us to overcompensate later on

    - Why learning the right lesson at the wrong time can be dangerous

    - The importance of judging process and not outcome when learning from your mistakes

    • 17 min
    Active Value Investing in a Changing World with Vitaliy Katsenelson

    Active Value Investing in a Changing World with Vitaliy Katsenelson

    In this episode we are joined by Vitaliy Katsenelson. Vitaliy is the author of the popular Contrarian Edge blog and the CEO of investment firm IMA. 

    As quantitative investors, we often find we learn the most from investors who use very different approaches than we do. As a discretionary value investor and long-term student of value investing, Vitaliy provides us with an alternate take on value and the advantages a discretionary approach can offer in uncertain times. 

    We discuss: 

    - How COVID-19 has changed the game of value investing

    - Why buying great companies sometimes isn't a great investing strategy

    - The importance of developing a process to challenge your own beliefs

    • 49 min
    Is the Price/Book Ratio Dead?

    Is the Price/Book Ratio Dead?

    The Price/Book ratio has probably been the most important valuation ratio of the past century. If you look at the academic research that supports value investing, you won’t find any other ratio that is referenced more often. There is also no ratio that is used more by systematic value funds. 

    But the rise on intangible assets and other factors have led many to question whether the ratio has value any more. 

    In this episode, we look at the arguments for and against the Price/Book and whether it should still have a place in value portfolios. 

    • 16 min
    Can Warren Buffett Be Quantified?

    Can Warren Buffett Be Quantified?

    In this episode, we are going to try something a little different. Our goal at Validea is to capture quantitative strategies that work over the long-term. To do that, we go through books and academic papers to find factor-based models with results to back them up. We are going to periodically do some episodes for the podcast where we do a deep dive into these strategies and look at the factors behind them.
    In the first episode, we will take a detailed look at our strategy based on Warren Buffett, which was extracted from the book Buffettology. But before we look at the strategy's criteria in detail, we start with a more basic question: Can Warren Buffett be quantified? 

    • 16 min
    The Pros and Cons of Quantitative and Discretionary Investing

    The Pros and Cons of Quantitative and Discretionary Investing

    We all have a tendency to believe that the way we invest is the best way. As quantitative investors, we can sometimes feel that there is no reason anyone should ever use a discretionary strategy. But like most issues in investing,  there are two sides to this argument. In this episode, we talk about the benefits of both quantitative and discretionary investing. 

    We discuss: 

    - Why quantitative strategies can limit the impact of emotion and biases

    - Why discretionary strategies can work better in situations where a more detailed analysis is needed

    - How both strategies contain some elements of the other

    - Why the ultimate answer may lie in the hands of the end investor

    ABOUT THE PODCAST
    Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.

    SEE LATEST EPISODES
    https://www.validea.com/excess-returns-podcast

    FIND OUT MORE ABOUT VALIDEA
    https://www.validea.com

    FOLLOW OUR BLOG
    https://blog.validea.com

    FIND OUT MORE ABOUT VALIDEA CAPITAL
    https://www.valideacapital.com

    FOLLOW JACK
    Twitter: https://twitter.com/practicalquant
    LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

    FOLLOW JUSTIN
    Twitter: https://twitter.com/jjcarbonneau
    LinkedIn: https://www.linkedin.com/in/jcarbonneau

    • 19 min

Customer Reviews

5.0 out of 5
9 Ratings

9 Ratings

Andrew ODU ,

Excess return

Good insights into using quantitative approaches to gain excess return using value and other metrics

ForTHREE ,

Concise and Intelligent

Quick hit of information, basically a deeper dive into a classic Validea blog!

scottworxshop ,

???

Very Interesting!

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