130: How Passive Investing May Have Created a Bifurcated Market for Value Investors

Back in September 2021, we met with Nic Cary of Blockchain.com, which was already well on its way to becoming one of the world’s leading digital asset platforms.  Since then cryptocurrency volatility has been extraordinary, and witness to wild gyrations, the imprisonment Sam Bankman-Fried, SEC action, regulatory hand wringing and then this year, BlackRock’s launch of one of several crypto ETFs (approved by the SEC), and Bitcoin's halving last weekend. In this conversation Nic makes the case for crypto to a sceptical Simon, discussing the importance of blockchain technology, the growth of the crypto markets, scarcity, risk, speculation, institutional versus retail participation, and of course, the merits of gold vs crypto. Blockchain has now grown to be one of the world’s largest crypto infrastructure providers, enabling both institutions and individuals to buy, sell, utilise, understand and exchange crypto products. Since being co-founded by Nic in 2011, they’ve facilitated about a third of all bitcoin network transactions, processing over $1tn in transaction volume for 37m users. Also joining this conversation was Will Campion of Campion Capital (who set up the podcast with Simon), making his debut appearance on the show! ​​The Money Maze Podcast is kindly sponsored by Schroders, and IFM Investors.  Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube

In this interview, we return to Canada. Having interviewed Jo Taylor of OTPP last year, this time we sought out one of the most well-known and successful women in private equity, someone who is also proving to be a huge role model for young women pursuing careers in the investment industry.  Suyi Kim, educated at the University of Seoul and then Stanford, explains the attraction PE had for her as she pivoted from consultancy. She discusses sourcing the deals, when they entered and exited Alibaba, the differences in the opportunities in PE investing across continents, and importantly, how they approach China.  She discusses how PE has changed, why it remains a bottom-up process, the potential for high returns, and why it is an attractive business for young people to consider. Finally; she shares her two most important words: “Be Curious”! ​​The Money Maze Podcast is kindly sponsored by Schroders and IFM Investors Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube

It’s not every day that one of our guests from the world of finance has successfully scaled Everest 5 times, been awarded an MBE by the Queen, raised millions for charity, and is a vocal ambassador for the NSPCC. For his day job, he led trading desks at Goldmans, CS, UBS and Bluecrest. If that wasn’t enough for most people, he then became sufficiently intrigued by the changing world of gold to become CEO of the World Gold Council (WGC). In this fascinating conversation, David explains how the WGC is bringing gold bullion into the digital age from regulatory, provenance, ESG, and tokenisation angles. He assesses growing institutional demand (gold prices have hit record highs in recent weeks), describes the supply side dynamics, examines why gold improves the risk/return characteristics in a portfolio, why gold mining companies may be too cheap, and how the future may look for gold. Finally, David reflects on his childhood as a victim of child sexual abuse, the agony and therapy of the film about him, Sulphur & White, and the priorities which need addressing (in the UK alone, 1 in 20 children suffer sexual abuse). ​​The Money Maze Podcast is kindly sponsored by Schroders and IFM Investors Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube

In this Easter special we explore a slightly different realm: religion! Very occasionally one individual can have a disproportionately powerful impact on a collection of people, but very rarely does that person’s impact grow in time and reach, and expand beyond anyone’s expectations and for millions, be responsible for enhancing their lives. Our guest, the Reverend Nicky Gumbel, talks of his own odyssey from barrister to clergyman, before widening both awareness and access to Christianity to those outside the church via the Alpha Course.  Alpha - a term which we usually employ in a very different context on the podcast - effectively rebranded and modernised Christianity for a new generation in the 1990s, with tens of thousands of courses being run by the end of the decade. The programme has now been translated into 112 different languages, and 30 million people have taken part.  In this interview he explains his own pivot to faith, how he was asked to take charge of the Alpha Course development, and in the subsequent years how its reach was extended globally. He explains how he built it into a global brand, how charismatic leadership can be relevant to all fields, the changing relationship between faith and secularism, the role of religion for prisoner rehabilitation, as well as thoughts on morality, money and giving! ​​The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches, and IFM Investors. Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube

Our guest today earned her master’s degree in physics, captained her rugby team at Oxford, and then a few years later was posted as bp’s engineering manager to Baku, Azerbaijan. She then spent time as Country Head in neighbouring Georgia and COO of Lightsource bp, and is now bp’s Senior Vice President, Wells.  In this conversation, Ann explains bp’s mission to become an integrated energy company, built on three strategic pillars: resilient hydrocarbons, convenience and mobility and low carbon energy. She talks of the need for a reliable and balanced energy system, priced appropriately and invested pragmatically as the world transitions towards a lower carbon future. Also discussed is how energy supplies are evolving amidst global conflicts, the role of financing in the energy transition, and how AI is impacting energy demand.  Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube ​​The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches, and IFM Investors. DISCLAIMER: This episode was recorded in February 2024. You can find the latest information on BP’s performance and operations at bp.com/results.

In May 2021, we turned our attention to an investor dilemma – Should we view wine as a proper asset class? And how should we think about the wine industry, unmodernised for so long, but ripe for change! A disrupter emerged in 1997, in the shape of Bordeaux Index, set up by Michael Spencer and Gary Boom. In this conversation we learn about the shifting sands of supply and demand. We discuss global climate impact and some of its advantages for the wine industry. We discuss wealth creation and the continued thirst for luxury wines, champagnes and whiskies. Gary also explains where new and exciting wines are emerging, why he’s re-assessed the emerging English opportunity set, and how they’re embracing digital transformation via their new LiveTrade platform (which was rebranded & expanded this year). Gary discusses the impact of their technology in helping bring liquidity and transparency to wine trading - reflecting on his previous life at ICAP - and why increasing numbers of investors are building portfolios in the wine & spirits world. We then assess the key question; where might there be money to be made in this fast-evolving market? And aside from the investment implications, who doesn’t like to sample lovely wine?! No one wants to finish their lives observing wistfully, as Ernest Hemingway once did, that “my only regret in life is that I didn’t drink more wine!” NOTE - This episode was recorded in late 2023, prior to the re-launch of their LiveTrade product in early 2024. The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches and IFM Investors. Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube

In this bitesize feature, David Einhorn, Founder & President of Greenlight Capital, discusses the potential impact passive investing has had on value investors, and where opportunities may lie.  David is one of Wall Street's most closely followed hedge fund managers, whose public commentary on stocks has had market moving results ('The Einhorn Effect'). He's perhaps most well-known for his short bet on Lehman Brothers in 2007.  This is an excerpt from his appearance at the London Value Investor Conference in May 2023, included as part of our short-form Money Maze Vignettes series. The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches, and IFM Investors.  Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube

In today’s episode, the Money Maze Podcast takes a short trip back to 2023 to revisit our Second Private Markets Series.  We shared fascinating conversations with guests from the likes of TPG, Tikehau Capital, Nasdaq Private Market, CAIS, and IFM Investors.   In case you missed those episodes, we have compiled together some of the highlights from those episodes, including David Neal of IFM Investors on why infrastructure ‘feels like almost the perfect institutional asset class’ and Matt Brown of CAIS on how technology is bridging the gap between financial advisors and alternative asset managers. We also hear from Pamela Pavkov and Anilu Vazquez-Ubarri of the TPG NEXT fund, which is investing in underrepresented alternative asset managers, Mathieu Chabran on Tikehau Capital’s extraordinary growth story and Tom Callahan, CEO of Nasdaq Private Market, who explains how the world of secondary markets for private stocks works.  You can listen to all the full episodes here via www.moneymazepodcast.com/series/private-markets. Sign up to our Newsletter | Follow us on LinkedIn | Watch on YouTube The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches, and IFM Investors. 

In this bitesize feature, A-Rod Corp’s CEO, Alex Rodriguez, discusses principal capital, creating opportunities for partners, and A-Rod’s geographical scope. In the full interview, Alex speaks about how he came to dominate his sport, developing a substantial portfolio of investments and businesses through his investment firm, invaluable advice given to him by Warren Buffet. Listen or watch here.  Money Maze Moments are short extracts taken from some of our most popular episodes, which we found interesting or struck a chord with our listener community.  The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches, and IFM Investors. 

With a successful career incorporating 18 years at Goldman Sachs, and then CEO of the Man Group, Emmanuel explains today’s landscape for investors across the fixed income universe. He explains PIMCO’s mission and reach. He discusses how the world is awash with cash and short-term maturities, creating opportunities with interest rates having adjusted upwards. He feels there is a tidal wave of liquidity, underpinning an optimistic view of the possible investments which exist; from credit, both public and private, through to emerging market local FX debt. He explains why alpha is very identifiable and investable and why active beats passive in the fixed income universe. He discusses how AI is transforming data processing in the finance sector.  Finally, he explains why banks are retreating from some quarters of the lending landscape, creating opportunities for PIMCO. Finally, he reflects on the European dilemma in being able to create meaningful growth, and why all these government debts will have to be paid at some point ahead. ​​The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches and IFM Investors. -- DISCLAIMER: PIMCO manages $1.86 trillion in assets, including $1.48 trillion in third-party client assets as of 31 December 2023. Assets include $82.2 billion (as of 30 September 2023) in assets managed by PIMCO Prime Real Estate (formerly Allianz Real Estate), an affiliate and wholly-owned subsidiary of PIMCO and PIMCO Europe GmbH that includes PIMCO Prime Real Estate GmbH, PIMCO Prime Real Estate LLC and their subsidiaries and affiliates. PIMCO Prime Real Estate LLC investment professionals provide investment management and other services as dual personnel through Pacific Investment Management Company LLC. PIMCO Prime Real Estate GmbH operates separately from PIMCO.