Redefining Value Investing in a Magnificent Seven Dominated World | Jacob Pozharny

Excess Returns

In this episode of Excess Returns, hosts Jack Forehand and Justin Carbonneau sit down with Jacob Pozharny, partner at Bridgeway Capital Management, to explore the increasingly important role of intangible assets in modern investing. Jacob breaks down what intangible assets are - from intellectual property and proprietary algorithms to brand value and customer relationships - and explains how these harder-to-measure assets are changing traditional investment approaches. He discusses Bridgeway's pioneering research on "intangible intensity" and how it affects their investment strategy, particularly for high vs. low intangible companies.

Key topics covered: How intangible assets complicate traditional valuation metrics Why sentiment analysis matters more for high-intangible companies The implications of AI for intangible asset valuation Bridgeway's approach to long-short investing International investing opportunities and market efficiency The importance of understanding model assumptions and staying humble as an investor Whether you're interested in quantitative investing, understanding modern valuation frameworks, or keeping up with evolving market dynamics, this conversation offers valuable insights into how one of the industry's leading firms approaches these challenges.

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