Aug 7, 2020
Eric Chung, chief investment officer of Lighthaven Capital
Management, joins the podcast to discuss his view that math,
financial models, and algorithms are insufficient when it comes to
"The widespread use of math in the investment management
industry, while it can be helpful ... I think there's been some
pretty significant overreliance on these things," says Chung.
Content Highlights (Spotify users can skip to the
segment by clicking on the timestamp):
- The example of Long Term Capital Management and how it got him
to take notice (2:41);
- Not enough has been written about the fallacy risk parity
- Background on the guest (24:36);
- Lighthaven Capital's investing strategy (28:30);
- Chung's decision to de-risk the portfolio in Q1 (31:49);
- The "external, exogenous factors" that go into his risk models
- A Joseph Biden presidency and what it could mean for markets
- What is the market getting wrong right now? (39:05);
- Contrarian opinion on the potential Biden administration's
stance toward China (46:42);
- Reasons for optimism (49:49).
More Information on the Guest:
Not intended as investment advice.