MiB: Adam Parker, Trivariate Analysis

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This week, we converse with Adam Parker, who’s the founder and CEO of Trivariate Analysis. Beforehand, he was Chief US Fairness Strategist and director of World Quantitative Analysis at Morgan Stanley, ranked as a prime strategist and quantitative researcher a number of occasions by Institutional Investor journal. Parker additionally co-authored a groundbreaking paper on gender range as a threat issue. He holds B.S./M.S. levels in statistics and earned a Ph.D. in statistics from Boston College.

At Morgan Stanley, he analyzed 3,500 analyst observations over 7 years. (Half had been obese, half equal or underweight) The overweights beat the underweights by ~4%; He additionally ran a quant mannequin, the place the highest quintile beat the underside quintile by 9%; Lastly, combining elementary and quantitative fashions, for those who solely purchased what each beneficial and shorted what each disliked, it generated 13% in returns.

A yr in the past, Trivariate made an aggressive name going lengthy power because of the triple crown of quant: Upwards earnings revisions, optimistic worth momentum, and low-cost valuation versus historical past. Since he made the advice, Power has crushed Tech by 50%. He doesn’t foresee peak oil demand over the subsequent 10 years.

Parker additionally doubts the Fed goes to tighten the financial system right into a recession and believes there are a lot of lengthy/quick alternatives. We additionally talk about semiconductors and why it has taken so lengthy to ramp up post-pandemic; issues are starting to normalize, however nonetheless has a number of quarters to go.

A listing of his present studying is right here; A transcript of our dialog is accessible right here after the vacation weekend.

You may stream and obtain our full dialog, together with the podcast extras on iTunes, Spotify, Stitcher, Google, Bloomberg, and Acast. All of our earlier podcasts in your favourite pod hosts may be discovered right here.

Be sure you try our Masters in Enterprise subsequent week with Mark Mobius of Mobius Capital. Referred to as the “The Godfather of Rising Markets,” he was tapped by Sir John Templeton in 1987 to run Templeton Rising Markets, one of many first EM funds on the earth. Over the subsequent 30 years, he visited 112 nations, invested in 5,000+ corporations, and traveled 1,000,000+ miles. This helped to develop the Templeton Rising Markets Group from $100 million in six markets to over $40 billion in 70 nations.