Rob Arnott -- "The S&P 500 Index is a Growth-Tilted, Momentum-Chasing, Active Strategy"
Rob Arnott, founding chairman of Research Affiliates, is one of the most influential quantitative investors and researchers of the last 30 years, having produced over 100 academic papers in a career that began before the term quant had even been coined. In this interview with Mike Green, chief strategist and portfolio manager at Logica Capital Advisors, Arnott argues that the current period is extremely reminiscent of the late 90s, the last time that value investing was declared surely dead. Together Arnott and Green discuss the structural factors related to indexing that have caused the return of calls of the death of value and debate whether these forces can be calmly unwound by the natural mean reverting tendencies of markets or whether the freight train of “passive” indexation has too much steam to be stopped by anything less than a catastrophic crescendo with an abrupt and devastating end. Filmed on July 28, 2020.