F*ck Alpha – Disrupt Passive

Featuring Andrew Economos

Andrew Economos, chief strategist at Nexchange, has been managing money for close to three decades and based in Hong Kong has an incredibly perceptive view on China’s influence over the territory. In a future vision of the global asset management industry, Andrew sees the passive investment space as ripe for disruption, with real returns the key, instead of alpha or beta. Filmed on March 3, 2017 in Hong Kong.

Published on
21 March, 2017
Topic
Politics, Technology, China
Duration
61 minutes
Asset class
Equities, Crypto-currencies, Bonds/Rates/Credit
Rating
43

Comments

  • ra

    randy a.

    28 2 2018 05:04

    0       0

    whats the trade?

  • RM

    Ritwik M.

    3 4 2017 09:04

    0       0

    👍

  • DP

    David P.

    31 3 2017 08:56

    0       0

    Staggers me that anyone could give this a thumbs down!!! To Kathleen S`s point - Early education is crucial to folk taking charge of their finances. It harks back to Edward Bonham-Carter's interview last year and his comment suggesting a Citizenship Course with personal finance / investment as a component - it certainly should be a core part of high school education somewhere - immediately! Many thanks to you both SO much food for thought here.

  • AE

    Andrew E.

    30 3 2017 06:41

    1       0

    Thank you to all viewers and those that commented, both pro and con. In fact, a few of your comments helped re-shape my thinking on the issues.

    It's an interesting time. Good luck to us all.

  • fT

    forecast T.

    28 3 2017 18:53

    0       0

    Securitization of football club players is under consideration as these clubs try and formulate a value per player beyond the equity value of the stock. Manchester uniteds dividend is nice.

  • AH

    Andreas H.

    24 3 2017 18:59

    1       0

    Love it!

  • WM

    Will M.

    24 3 2017 18:24

    1       0

    Some interesting commentary. Though not sure vast majority of millennials have much interest or money in directing investment anyway. I suspect its the boomers and Gen X will still rule the roost on investing for another decade. The millennials may be more open to robo-investment planning because of reliance on electronics and online media. HOWEVER I do believe the cost of supporting baby boomers is going to make millennials start to question who is getting all their wealth transfer taxes. Best quote was "By the way I am not left or right, I think they are all gangsters". I have thought that for 25 years now since I stopped becoming idealistic around 30.

  • M

    Mark .

    23 3 2017 16:36

    1       1

    This one should have 5X the number of views. I don’t get that. Really good. I keep watching these videos and I can’t see how we are not going to get a pre Fed / Ron Paul style deflationary the hard way after the statists destroy it all with inflation.

  • LV

    Luís V.

    23 3 2017 13:18

    0       0

    Started to think.
    Not sure if idealism is enough. Does Mr. Economos take in to account the state apparatus? The way corporate sectors will try to freeze any such changes?
    It would be nice if markets took the lead of the changes, but there is a political capture that needs to be take into account here.

  • VS

    Victor S.

    23 3 2017 12:13

    2       0

    Bright man but not enough market outlook and why.... people watch an hour for a bottom line along with background. No beef ,but i like the guy.

  • DS

    David S.

    23 3 2017 08:48

    1       0

    I am afraid that governments will coop many of the new ideas like Bitcoin. China is working on Bityuan and will have it ready this year. With Bityuan China will have a cryptocurrency that they can review any transaction. When Bityuan is active, China will legislate Bitcoin out of existence in China as Hawaii forced all its residents to close their Bitcoin accounts.

  • JF

    James F.

    23 3 2017 05:56

    1       0

    Fantastic interview!

  • SD

    Stephen D.

    23 3 2017 00:55

    6       0

    Great intrerview! But let's try and break down that 8% 'required' return. The global GDP is growing at 3%, 4% in a good year. Profits as a % of GDP are pretty much at an all time high so extra profit growth is going to be hard, and often achieved by improiving the bottom, not the top line. And one mans cost saving is another mans revenue hit. The bond market isn't going to give you even a third of your 8% unless you have a lot of credit or duration risk. Public equities are expensive and low yielding. Fuck Alpha? Maybe embracing Alpha may be the only way.

  • KS

    Kathleen S.

    22 3 2017 17:29

    19       0

    I don't see how turning everyone into an hourly debt slave, or a precariat worker is going to save the middle class. Before we open up people to taking responsibility for their investments you need to educate your population on finance and not fake finance like we hear on CNBC. In addition to need to have some kind of rule of law that protects people from predatory banking (like we have now). What young people is this guy talking about, the privileged group of kids he hangs around with, what about the masses of millennials that are living in their parents basements with crushing student loan debt - that don't have two nickles to invest. Our society has created snowflakes and now you think pulling the rug out from under them is going to make them "raise to the occasion".

  • gb

    gabriel b.

    22 3 2017 04:32

    10       2

    Great interview! Loved the blend of economics , politics and a little philosophy. Always impressive when you see someone able to separate things in the past that made them successful changing and adapting with the times but bringing their knowledge and experience along to give them an edge.

  • BL

    Bryn L.

    22 3 2017 03:13

    2       0

    I like the idea of a securitized pool of labor as an asset class

  • GD

    Gustavo D.

    22 3 2017 01:10

    1       0

    When I hear about extracting value off of things/people that were once not extractable, or buying talents, all I can think about is Bitcoin.

  • DS

    David S.

    21 3 2017 23:55

    0       0

    Re: George F. – It might be wise to have part of your portfolio in an actively managed fund where long-term experience is added to market analysis and big data as suggested in the video. DLS

  • GG

    Guillermo G.

    21 3 2017 21:44

    1       1

    Great interview. Great ideas about how the future of work could be structured. What we view as "institutionalized" today will have to be reshaped if we still want to have a future in this world. Only good ideas and a lot of courage will pull us through into the 21st Century. No more complacency!

  • DS

    David S.

    21 3 2017 21:02

    6       0

    With the title, I did not expect such a great interview. Mr. Economos addressed quickly and expertly many areas of importance to me. In hindsight, many will agree that QE1 helped to clear the field. The Fed would have been brilliant to stop QE there. Each time the Fed tried to stop, the greed of Wall Street chose to have a temper tantrum in hopes of grabbing more cash. Asia followed the IMF and World Bank’s advice to get it over, and they are in a better position for it. Sauce for the goose was not sauce for the gander. DLS

  • LV

    Luís V.

    21 3 2017 20:32

    7       0

    I need to take a deep breath. Good starting points to think about. Hat tip RVtv and guest.

  • JC

    Ja C.

    21 3 2017 16:46

    6       9

    Good presentation. Crass title.

  • RM

    Richard M.

    21 3 2017 15:57

    13       4

    Wow, this was great! Really a high quality interview - loved it. Great commentary on the millenial issues and tech (Fin-tech, Med-tech, etc). I liked his optimistic outlook (I need more of that myself )! Lot's of really deep thoughtful issues covered, it gives you a lot to think about in deriving your own view of the future. Thanks Grant and Andrew!

  • GF

    George F.

    21 3 2017 11:43

    2       1

    The problem with pushing down the cost of prediction is the cost of prediction is lowered for everyone, not just the person I am paying 1% of assets over a passive ETF's expenses. The idea behind passive ETFs is management will at least do no harm.