Ryan Myers on Quantitative Investing

Fundamental and Quantitative Research Strategies for Investing with Ryan Myers

One of the benefits to investing is the range of research driven approaches that investors can employ towards making their investment decisions. After careful study and practice, investors often choose between or may even blend fundamental and quantitative strategies. Both fundamental and quantitative strategies incorporate a substantial use and analysis financial data, but fundamental approaches delve much further into the qualitative aspects of the company, including management quality, competitive positioning, capital allocation decisions and often an estimation of a firm’s intrinsic value. Conversely, quantitative strategies remain considerably more numbers driven regarding both investment selection and portfolio management. While some observers may believe quantitative investing overlooks important qualitative elements, proponents of the quantitative discipline can point to a dispassionate investment process that removes emotion and the pitfalls of human persuasion. In reality, both approaches work, and astute investors often incorporate elements from both fundamental and quantitative strategies into their approach.

Ryan Myers, a Portfolio Manager at Causeway Capital Management, joins us to talk more about these strategies for investing in global small-cap equities. Mr. Myers is a quantitative portfolio manager at Causeway. He joined the firm in June 2013 and has been a portfolio manager since January 2021. His responsibilities include alpha research, stock selection, and portfolio construction. Mr. Myers earned a BA, magna cum laude, in economics from Harvard University, where he was elected to Phi Beta Kappa. He earned an MBA from the Stanford Graduate School of Business, where he was an Arjay Miller Scholar. Mr. Myers currently serves on the Board of Trustees of the Yosemite Conservancy, an organization dedicated to supporting projects and programs that preserve Yosemite National Park and enrich the visitor experience.

 

What You Will Learn:

●        [00:01] Episode intro and a quick bio of the guest, Ryan Myers

●        [02:45] Ryan’s role at Causeway Capital Management 

●        [03:23] His backstory and what led him to the investing career path

●        [05:44] Ryan’s views on the current international small-cap equities

●        [11:31] How the rising interest rates in the US are affecting the international markets

●        [17:07] Macro and micro factors Ryan and his company pay attention to before investing

●        [23:52] Number of stocks in the stock universe

●        [27:18] Factors Ryan uses to weigh on the international stocks to invest

●        [32:40] Number of stocks in the Causeway Capital Management portfolio

●        [35:30] How the quantitative team sorts the stock companies selected for investment

●        [41:59] The meaning and causes of rebalancing portfolio in investments

●        [44:30] Why quantitative investing needs to be evolutionary

●        [47:15] The use of machine learning and AI to influence portfolio decisions

●        [52:25] Ryan’s competitive advantage to the quantitative approach to small caps

●        [59:24] What keeps Ryan awake in this investment strategy

●        [01:01:12] Call to action and ending the show

Website: https://www.causewaycap.com
Linkedin: https://www.linkedin.com/in/

The information presented in this podcast or available on the website is not intended as and shall not be construed as financial advice. This podcast is produced for entertainment value. Investing is inherently risky. And I encourage you to seek financial advice from a professional who is aware of the facts and circumstances of your individual situation.<