The Legacy of Jim Simons and Quant Investing with Meb Faber

Meb Faber is the co-founder and Chief Investment Officer of Cambria Investment Management, host of the Meb Faber Show podcast, and an accomplished author of numerous books and white papers on investing.

In this episode, Meb discusses the legacy of Jim Simons and the impact of Renaissance Technologies on quantitative investing. He dives into the value of trend following and global diversification in investment portfolios, and the importance of a scientific approach to the markets. Meb also shares insights on the current US industrial policy, the future of US vs. international investing, and highlights a lesser-known semiconductor stock that has outperformed Nvidia.

Please enjoy our conversation with Meb Faber.

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The Investipal Podcast is produced by ⁠⁠www.investipal.co⁠⁠. Past guests include Peter Lazaroff, Douglas Boneparth, Jamie Hopkins, Tyrone Ross and many more.

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Find Meb Faber at:

1. https://mebfaber.com/
2. https://twitter.com/mebfaber
3. https://www.youtube.com/channel/UCKvWzzrVUA_DSCoKXL6GU2w
4. https://www.cambriafunds.com/

Other Links Mentioned In the Episode:

https://www.amazon.com/Man-Who-Solved-Market-Revolution/dp/073521798X

https://www.acquired.fm/episodes/renaissance-technologies

https://mebfaber.com/wp-content/uploads/2016/04/GAA-Book-1.pdf

Hanmi Semiconductor Co Ltd (the little known stock that has outperformed Nvidia) https://finance.yahoo.com/quote/042700.KS/

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Key Takeaways

1. Jim Simons' Legacy: Jim Simons is considered one of the greatest investors, particularly in the quant space. His approach, combining scientific rigor with financial markets, led to extraordinary returns and has left a lasting impact on quantitative investing.
2. Scientific Approach to Markets: Renaissance Technologies, founded by Simons, utilized a highly scientific approach to trading, involving high-frequency, short-term positions across various asset classes. This strategy, although not scalable beyond a certain size, delivered consistent and high returns.
3. Trend Following and Diversification: Meb advocates for a significa