A Twitter Recap of the Year’s Best Investment Conference
After attending Tuesday’s Evidenced Based Investing Conference in New York City, all I have to say is…WOW. It was an absolute top-notch event from top to bottom.
One thing that was notable at this conference more than any other was the level of social media engagement. Often at events like this, you see some people glued to their phones not out of excitement, but out of boredom. This was different. The Finance Twitter community was out in full force and the magic elixir of an All-Star lineup, constructive debate, actionable insights and plenty of humor made this occasion one to remember and certainly solidified it as a going concern.
I won’t give a detailed recap here as a few others have already beat me to it. See:
These are the Highlights (The Reformed Broker)
My Evidence-Based Observations (A Wealth of Common Sense)
Notes from the 2016 Evidence-Based Investing Conference (ValueWalk)
Instead, I compiled some of the top Tweets throughout the conference from myself and other attendees, broken out by session. So without further ado:
https://twitter.com/ReformedBroker/status/798523149172305920
Finance Twitter, assemble! #EBIConference pic.twitter.com/ycgSzYgLC0
— Phil Huber (@bpsandpieces) November 15, 2016
Josh Brown likens opposition to evidence-based #investing to the Church's opposition to science in the C15th & 16th @ReformedBroker pic.twitter.com/jzH6Cz1MGw
— The Evidence-Based Investor (@RobinJPowell) November 15, 2016
Josh Brown likens opposition to evidence-based #investing to the Church's opposition to science in the C15th & 16th @ReformedBroker pic.twitter.com/jzH6Cz1MGw
— The Evidence-Based Investor (@RobinJPowell) November 15, 2016
@morganhousel "part of the beauty of a 60/40 is that there are fewer knobs to fiddle with." #EBI
— Corey Hoffstein 🏴☠️ (🖼, 🛍) (@choffstein) November 15, 2016
"A good advisor tailors the client's portfolio to the research but also to what the client can stick to." #ebi
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
Interesting thought from @daniel_egan - find out how to reward clients for NOT constantly logging in to check their accounts #ebi
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
"it's in a lot of people's interest to complicate things" in investment world
— tom brakke (@researchpuzzler) November 15, 2016
- Gregg Collett at EBI
"it's in a lot of people's interest to complicate things" in investment world
— tom brakke (@researchpuzzler) November 15, 2016
- Gregg Collett at EBI
Ellis: David Swensen and Jim Simons should keep playing to win.
— Phil Huber (@bpsandpieces) November 15, 2016
The rest of us should focus on not losing.#EBI
Charles Ellis on more informed/competitive market than 50 years ago. Harder than ever to outperform net of fees #EBI pic.twitter.com/kbvtgEu5Nf
— Peter Lazaroff (@PeterLazaroff) November 15, 2016
Ellis: big difference between knowing something that matters and knowing a lot
— tom brakke (@researchpuzzler) November 15, 2016
the curse of the investment business
"I've served on 14 different investment committees. Fees are never discussed."
— Ben Carlson (@awealthofcs) November 15, 2016
- Charley Ellis
Charley Ellis' wonderful insight: before you ask What am I paying, ask What am I buying? Love that. #EBI #IMNevents #investing
— Brian Portnoy (@brianportnoy) November 15, 2016
Ellis: in aggregate, >100% of value/add by asset managers accrues to the managers themselves
— tom brakke (@researchpuzzler) November 15, 2016
Charley Ellis: Active management has completed its mission. Markets are efficient. Fund managers shd become investment counsellors instead
— The Evidence-Based Investor (@RobinJPowell) November 15, 2016
Ellis inverts the decision. Choosing active over index means paying 12x more for lower rate of return and measurable higher risk
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
Active/passive a meaningless distinction - @MebFaber #EBI
— Phil Huber (@bpsandpieces) November 15, 2016
All new flows coming into funds priced 50 bps and under - MStar's John Rekenthaler #EBI
— Phil Huber (@bpsandpieces) November 15, 2016
"Right now low vol is expensive crap" - @alphaarchitect, pulling no punches#EBI
— Phil Huber (@bpsandpieces) November 15, 2016
@alphaarchitect "everything is a manifestation of value and momentum."
— Brian Portnoy (@brianportnoy) November 15, 2016
@alphaarchitect "Everything that works has to suck." Strategies that work well require periods of pain. #ebi
— Peter Lazaroff (@PeterLazaroff) November 15, 2016
Tom @researchpuzzler on organizational alpha: "The first step is being honest with yourself." What do you do and why do you do it. #ebi
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
Groups/teams need cognitive diversity @BlairHduQuesnay #EBI
— Brendan Mullooly, CFP® (@BrendanMullooly) November 15, 2016
.@BlairHduQuesnay - Only 16% of CFA charterholders are women.
— James Osborne, CFP® (@BasonAsset) November 15, 2016
"What message are we sending to young girls -- they can be a medical doctor, but not an investment adviser?"
— Sloane Ortel 🏳️⚧️ (@sloaneortel) November 15, 2016
- @BlairHduQuesnay #cfawomen
John @BowmanJohnL: "We need to harness that energy spent on beating the market into something more rewarding and enduring." #ebi
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
A lot of what organizational alpha is about is identifying blind spots - @researchpuzzler #EBI
— Phil Huber (@bpsandpieces) November 15, 2016
The 4th variable in investor outcomes (adding to Alpha, Beta and Gamma) introduced by @BowmanJohnL: Phi
— Phil Huber (@bpsandpieces) November 15, 2016
Purpose, Habits, Incentives#EBI
"We need to build a culture that make fewer, better decisions" @researchpuzzler #EBI
— joeyfishman (@JoeyFishman) November 15, 2016
Tom @researchpuzzler: "Three year returns are absolutely a trap when evaluating investment managers." #ebi
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
"We need to be relentless about threading purpose & value through everything we do" - @BowmanJohnL
— Sloane Ortel 🏳️⚧️ (@sloaneortel) November 15, 2016
Keep it real, investment profession!
Buffett under performs the market by about 30% ~ every 2 years. That's what you have to do to be the world's best investor.
— Dan Egan 🖖✌️ (@daniel_egan) November 15, 2016
- @choffstein
Paul Hickey (@bespokeinvest): Clients aren't risk-adjusted decision makers, but are regret-minimizing agents. #EBI
— James Osborne, CFP® (@BasonAsset) November 15, 2016
Thousands of ETFs and a dearth of assembly instructions - @MikePhilbrick99 #EBI
— Phil Huber (@bpsandpieces) November 15, 2016
Excess return lives where you don't want to go - @MikePhilbrick99 #EBI
— Phil Huber (@bpsandpieces) November 15, 2016
My favorite thing about the #EBI conference so far: no-one is selling anything. Lots of honesty about limits and investor behavior.
— Dan Egan 🖖✌️ (@daniel_egan) November 15, 2016
"The digital age has rendered many business moats irrelevant or even toxic."
— Collaborative Fund (@collabfund) November 15, 2016
Jim Chanos at Evidence Based Investing conference
.@patrick_oshag just drew the Musk/PT Barnum parallel.
— James Osborne, CFP® (@BasonAsset) November 15, 2016
Quant data as much about what not to own as it is about what to own - @patrick_oshag #EBI
— Phil Huber (@bpsandpieces) November 15, 2016
"You don't need to short $scty, $tsla to benefit from them."
— Sloane Ortel 🏳️⚧️ (@sloaneortel) November 15, 2016
Not owning a thing is a decision. @patrick_oshag
Barry with Vanguard CEO Bill Mcnabb. "Indexing didn't take off sooner because returns were so high in 80s-90s. No one cared about fees." pic.twitter.com/E16SfoGU2B
— Morgan Housel (@morganhousel) November 15, 2016
McNabb: Active vs. passive distinction unimportant. "We were about low-cost first." #ebi
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
Bill McNabb of @Vanguard_Group: cyber security broadly is the biggest systemic risk we have#EBI
— Phil Huber (@bpsandpieces) November 15, 2016
.@Vanguard_Group 's scale:
— James Osborne, CFP® (@BasonAsset) November 15, 2016
2000: $500B in AUM, 12,000 employees.
2016: $4T in AUM, 15,000 employees.
One 8x, one +25%.
How to respond to a recession:
— Collaborative Fund (@collabfund) November 15, 2016
"First, what are we doing for our clients? Second, what are we doing for our people?" Vanguard CEO McNabb
McNabb: @Vanguard_Group getting much more active with proxies ~ what's the alignment of firm practices with l-t value creation
— tom brakke (@researchpuzzler) November 15, 2016
"Far too many ETFs today designed by marketers, not investors."
— Ben Carlson (@awealthofcs) November 15, 2016
- @jposhaughnessy
@jposhaughnessy says "Most people evaluate strategies over 3 years - that's insane! Need at least 5-7 years and probably much longer..."
— Adam Butler (@GestaltU) November 15, 2016
The Dow Jones Industrial Average might have been labeled as "smart beta" had it been launched today - SSGAs Mazza #EBI
— Phil Huber (@bpsandpieces) November 15, 2016
"We will always have a day job as long as human nature doesn't change" - @jposhaughnessy
— Phil Huber (@bpsandpieces) November 15, 2016
Jim @jposhaughnessy Dimensional "has done an outstanding job" with investor education. DFA and Vanguard have "trained investors best." #ebi
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
Biggest takeaway from my factor panel was importance of sticking w it through thick in thin. That's only way it works. #EvidenceInvesting
— Eric Balchunas (@EricBalchunas) November 15, 2016
Ben @awealthofcs summarizing his post from June: Institutional Investors are Vacationing at Lake Wobegon #ebi https://t.co/kkvCnFIDWQ pic.twitter.com/mlz628jTJ7
— 𝗕𝗜𝗟𝗟 𝗦𝗪𝗘𝗘𝗧 (@billsweet) November 15, 2016
.@awealthofcs : According to '15 BNY survey, 99% of institutional investors expected hedge fund returns >8%
— James Osborne, CFP® (@BasonAsset) November 15, 2016
Limitations of evidence?
— Phil Huber (@bpsandpieces) November 15, 2016
Discovered and implemented by humans, and thus subject to our inherent behavioral biases.#EBI
.@cflynnlevy : Advisors and institutional managers aren't any less biased than individual investors.#EBI
— James Osborne, CFP® (@BasonAsset) November 15, 2016
A lot of strategies look great on paper, but no one is eating paper - DFA's Apollo Lupescu#EBI
— Phil Huber (@bpsandpieces) November 15, 2016
You could be the world's greatest fisherman. If you go to a dry lake, you're not going to catch anything - Apollo from DFA#EBI
— Phil Huber (@bpsandpieces) November 15, 2016
About the author
Phil Huber, CFA, CFP®
Phil is the Head of Portfolio Solutions for Cliffwater, a leading alternative investment adviser and fund manager. Prior to joining Cliffwater in 2024, Phil was the Chief Investment Officer for Savant Wealth Management, a multi-billion dollar wealth management firm. Phil has been involved in the financial services industry since 2007. He earned a bachelor’s degree in finance from the Kelley School of Business at Indiana University. He is a member of the CFA Society of Chicago. More about me here. Twitter: @bpsandpieces
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