Citywire: Mistakes Were Made

Veteran fund manager Chris Davis and best-selling author Morgan Housel share some of their worst investment mistakes and the lessons they learned from these errors. In short, buying and holding great stocks is much harder than you think! 

Are humans completely prone to investment mistakes? Behavioural investment expert Joe Wiggins believes there are a multitude of traps even the most hardened of investor will fall into, so what can you do about it? In the final episode of the series, Wiggins, who has worked across major UK institutions and is now chief investment officer of research group Fundhouse, tackles the waking nightmare of thematics, the pain of past performance and the hubris of high-profile investors.

The truth path to ESG enlightenment is not paved with positive intentions but must be drilled home by the threat of meaningful punishment. That is the view of ESG expert Desiree Fixler, who oversee the sustainability efforts at DWS before being ousted and ultimately outlining what she saw as misaligned or misguided industry standards around sustainable investing. In this special episode, Desiree, who now works for non-profit group VentureESG, casts a critical eye over the world of ESG investing and looks at the most common mistakes investors and companies alike are falling into. We also hear from Jamie Catherwood on a historic treasure hunt that left investors more underwater than the precious jewels they were seeking.

Where are we in the market cycle? Legendary investor Howard Marks, co-founder and co-chairman of Oaktree Capital Management, shares his observations and discusses where the 'pendulum' may be heading in this interview with Alex Steger and Alex Rosenberg. Recorded live in San Francisco on November 17th.

Politicians have never been under greater scrutiny, but it is important to work out whether they are mad, bad, irrational or a hostage of fate. In a special Mistakes Were Made recorded at Citywire Berlin 2022 with author and commentator John Kampfner, which came after the political expert had shared his experience of where he thinks the world is headed. In this podcast, Kampfner, who has covered political change in Europe and beyond since the 1980s, reveals what he thinks is the currently the biggest political mistake that is being lived through, while also looking at the strange impact of a 24-hour news cycle. Plus, Investor Amnesia's Jamie Catherwood takes a closer look at how the boom in the automobile industry led a surge – and inevitable pop – in the burgeoning rubber markets of Malaysia.

Dynamic Beta investments' Andrew Beer is having a banner year with his managed futures strategy up big while just about everything else is down. But he's not always been on the right side of a major bubble burst, as explains to Frank and Alex.

Abrdn's Hugh Young is open about the mistakes and challenges that have afflicted him during his four decades of building his noteworthy presence in the Asian market. From picking hot stocks at the exact wrong moment to his long-considered concerns about the Chinese growth story. In this latest episode, the Singapore-based investor talks about the evolution of the Asian equity market, as well as how someone with his level of experience contends with the surge in short-termist thinking that is becoming more and more prevalent.

GQG Partners' CIO and star fund manager Rajiv Jain explains how an aversion to energy cost him big, that it's vital for fund managers to have skin in the game, and why PM turnover isn't always a bad thing. Plus, Investor Amnesia's Jamie Catherwood drops by to tell us about Japan's Samurai bunny bubble (yes, you read that right). Enjoy!

A Jamba Juice SPAC, insane trading costs, and a 19th century Fyre Festival... this podcast has it all! Ritholtz Wealth Management's Josh Brown, Michael Batnick, plus Investor Amnesia's Jamie Catherwood join the Mistake Were Made crew for a killer episode to kick off season four.

When does it make sense to stand up to your risk manager? For income outperformer Nick Clay it is when you are being strong-armed into doubling your stake in a company you have little faith in. In the last episode of this season, Clay, who works for UK boutique Redwheel, looks back on four decades of income investing and shares the lessons he has learned from being able to push back.

From infiltrating an ECB press conference to trying to side-step stampeding crowds, Mark Dowding is at the forefront of fixed income's many moving parts. In this latest episode, the bond chief for RBC-owned BlueBay Asset Management, digs into where he feels both he, and the wider market, are prone to going wrong.

Maybe our most honest guest yet? Could be! Morningstar's Christine Benz shares not one but four investments mistakes from her time as a fund analyst and director of personal finance. No spoilers, but Mark Mobius, Janus 20, and market timing all make an appearance.

From ‘Tiger mum' regulators to emotional stock pickers, there is a lot that Western investors (including Frank!) don't understand about Chinese markets. Rayliant Global Advisors' CIO Jason Hsu joins Mistakes Were Made to educate us (and the rest of the Western hemisphere) about China.

Fund industry stalwart Jean-François Hautemulle talks about the challenges faced by both fund selectors and companies trying to put exciting ideas in front of them. As part of this discussion, the UniCredit and JPM Asset Management veteran, also outlines lessons on dealing with big egos and misguided expectations.

Aperture Investors' founder Peter Kraus takes aim at a major failing he thinks is hurting asset management industry, as well as his own slow response to the need for a serious shift in mentality. The former AB chief also talks about other elements of engrained thinking that could be deemed problematic.

Queens Park Rangers manager Mark Warburton explains why he gave up a lucrative career in the City to pursue his dream of being a football coach. We also talk footballers and investments. Trigger warning: NFTs, property, and tax schemes may be mentioned!

‘Bond King' Bill Gross reveals regrets about joining Janus, ponders a bund blunder, shares the secret to being a star manager, and tells the tale of a bump into Trump. Plus so much more!

A false start with Nike, pumping the brakes on O'Reilly Auto Parts, and the stress of starting out as a deep value guy… …Polen Capital's growth guru Dan Davidowitz shares some early (and much more recent) mistakes from his investment career, and the lesson he's learned.

Martin Gilbert, co-founder and former CEO of Aberdeen Asset Management, looks back (not so fondly) on a high-profile scandal, warns about PE valuations, and shares the qualities he looks for in a fund manager.

In a special episode, Alex, Frank and Chris run the rule over the nine investment heavyweights who joined the Mistakes Were Made podcast for season two. From major operators who came unstuck by options to those who were left reeling by wildly ambitious trades early in their careers, we dissect and discuss common themes and concerns that emerged this time around.

How do you become obsessed with avoiding market bubbles? Get burned by one of course!   This is the tale of GMO founder and chief investment strategist Jeremy Grantham who is today known for his bearish views on the US stock market and for avoiding the 2000 and 2008 crashes, but in a past life had a much more gung-ho approach to things that go up. He tells all to Alex and Frank.  

Mark Mobius is one of the most recognisable names in emerging markets investing. But, even the most experienced of developing world investors is not immune from the odd aberration. He tells Chris and Frank how he has been caught out in his storied career and the rules he has adopted to never repeat the same mistakes.   Mark spent the majority of his career overseeing emerging market equity investments at Franklin Templeton before branching out with his own venture – Mobius Capital Partners – in 2018.

A godfather of gatekeepers, Bob Boyda reflects on a life in manager selection and some of the mistakes he made along the way.   He tells Alex and Frank about the dangers of digging for undiscovered managers, red flags in China (pun very much intended) and reveals a killer question all fund buyers should be asking PMs.   Bob is the former head of capital markets and strategy at Manulife Asset Management. During his time there, he designed and ran the firm's multi-manager portfolios, setting asset allocation and selecting PMs to run subadvised funds.  

Cambria's Meb Faber dials in from sunny California to tell Alex and Frank all about betting the house on a biotech stock… and losing. Spoiler alert: options are involved. As are some classic investor misbehaviors including overconfidence, a lack of diversification, and poor (well, no) sell discipline.   But, as ever, we are here to learn and Meb explains how the multiple lessons from this one early error have shaped him into the investor he is today, not least by steering him away stock picking and toward to a quantitative approach.  

Raphael Kassin, head of EMD hard currency at Itau, joins the Mistakes Were Made pod. He explains why you're not really an emerging market debt investor until you have experienced your first default. While many managers will be going through this for the first time with the Chinese debt and Evergrande crises, Kassin earned his spurs in 2001 during the Argentina default, a mistake he recounts in this episode.

Sarah Ketterer is CEO of Causeway Capital Management, the global equity shop she founded in 2001. She also runs the firm's flagship $6.3bn Causeway International Value fund.   Sarah tells the Mistakes Were Made team what she learned from getting burned by energy stocks, the reason she doubled down on VW following the emissions scandal, and why China is the ‘new frontier' for value investors.  

For the latest episode of Mistakes Were Made, we are joined by the Nobel Prize-winning economist Dr Richard Thaler and portfolio manager David Potter.   Thaler is pioneer in the field of behavioral economics and co-author of the best-selling Nudge: Improving Decisions about Health, Wealth, and Happiness.   Potter is a portfolio manager at Fuller & Thaler Asset Management, a San Francisco-based boutique that uses academic research on investor behavior to inform when to buy and sell stocks.   As well as their biggest investment errors, they discuss the drivers behind meme stocks (‘surprisingly dumb'), how to improve retirement saving rates (a nudge can help), and how to help Alex potty train his son (Cheerios are key).  

For the second episode of season 2, we are joined by Simon Hallett.   Simon is the vice chairman of Harding Loevner, an asset manager that specializes in global equities.   He's also the owner and chairman of Plymouth Argyle Football Club.   Simon tells the Mistakes Were Made team about the dangers of making market forecasts, why portfolio managers shouldn't put money in their own funds, and how buying a sports team is both the best and worst investment he has made.  

For the first episode of season 2, we are joined by Rob Arnott. Rob is known as the ‘godfather of smart beta' for his pioneering work researching and building quantitative investment strategies. Research Affiliates, the Newport Beach-based firm he founded in 2002, offers a series of reweighted indices and asset allocation strategies and runs some $171bn of assets. Rob tells the Mistakes Were Made team how he lost a third of his net worth in a matter of days (don't worry, he made it back!), why it's wrong to write off value, and the importance of curiosity.

For the latest episode of Mistakes Were Made, Alex and Frank are joined by Citywire's executive chairman and founder Lawrence Lever, AKA their boss.  A former lawyer and investigative journalist, Lawrence tells Alex and Frank about some of the mistakes he made when starting the business, what he learned from them, and how these lessons ultimately led to the success Citywire enjoys today.   Some early missteps include not taking all the advice on offer from renowned venture capitalist Hermann Hauser and trusting a rival to act honorably (spoiler alert: they didn't!).  We also discuss mistakes that the media can make when covering investment (Lawrence has some pointers for Alex on this), what fund managers often get wrong when starting their own shops, and why asset managers are probably nicer than investment bankers.   This is the last episode in the current series of Mistakes Were Made. We're taking a break over the summer and will be back September. Thank you for listening.  

Alex and Frank are joined by Mark Holman, CEO and portfolio manager at TwentyFour Asset Management, a boutique bond shop running some $28bn.   Mark told us about an error he made going into the Covid crash of 2020 and how the lessons learned from that mistake helped the firm position well for the recovery.   One of our most prepared guests yet, Mark also ran us through a list of common mistakes all bond investors make and what can be done to avoid them.  

Alex and Frank are joined by Ric Edelman, founder of Edelman Financial Engines, one the largest RIAs in the USA, with some $270bn in assets under management.  Ric tells us about the importance of compounding, why he's so bullish on bitcoin, and has some damning words for the wider financial services industry about the way it treats clients. 

For our latest episode of Mistakes Were Made, we are joined by Shannon Saccocia, CIO at Boston Private.   She tells Alex ad Frank about a time she backed a breakaway boutique manager, but things did not turn out as planned. Spoiler alert: ego plays its part.   Shannon and Frank commiserate with one another about a shared mistake in their respective retirement accounts, and a previous podcast guest gets a kicking (kind of, but not really). Enjoy!  

For our sixth episode of Mistakes Were Made, we are joined by Gene Goldman, CIO and director of research at Cetera.    Gene and his team oversee a recommended list of funds and run a suite of discretionary portfolios for Cetera, which has around $80bn of assets under management.   He tells Alex and Frank why it isn't always right to drop a fund when the lead manager exits, the best questions to ask PMs, and shares a cautionary tale about a team of missing analysts. Ooh, mysterious!  

For our fifth episode of Mistakes Were Made, we are joined by Chris Ralph, one of the UK's most influential fund selectors.   Chris spent a decade as CIO of St James's Place, a UK-listed advice firm with £130bn ($180bn) of assets under management.   He retired from the firm at the end of 2020 but remains a non-executive on its investment committee.   Chris tells Alex and Frank about an early error he made trading options, how success can change a manager, and the best way to break up with PMs. 

For our fourth episode of Mistakes Were Made, we are joined by Simon Gottelier, a portfolio manager at Natixis affiliate Thematics Asset Management, who specializes in water investment. In this episode, he tells Alex and Frank why he regrets being persuaded to invest in ‘the Donald Trump of drainage' and the importance of backing one's own process. He also explains the extent of water crisis we all face and, on a much lighter note, why he hates being asked for stocks tips by his friends.

For our third episode of Mistakes Were Made, we are joined by Anthony Scaramucci, who is the founder and managing partner of SkyBridge Capital.   Oh, and he was White House director of communications for a (very) hot minute back in 2017.   In this episode, he tells Alex and Frank about an early investment mistake, which taught him both humility and the importance of specialist knowledge.   He also discusses why he went from being a skeptic to a believer in bitcoin, what he learned from his White House firing, and what he looks for in hedge fund managers.   Listener discretion is advised as there are some curse words used in this podcast.  

Welcome to Mistakes Were Made, a new podcast from Citywire that asks investors about their worst mistakes and what they learned from them.    Hosted by Citywire's US editor Alex Steger and head of research Frank Talbot, each week we hear from an investor about their biggest errors and the lessons that came from them, all in an effort to help us make better investments.   Our guest for this episode is Liz Simmie, the co-founder of Honeytree Investment Management, a boutique ESG manager, headquartered in Toronto, Canada.   In this interview, she tells Alex and Frank about the dangers of being short term and the common mistakes being made by some ‘ESG' managers.  

Welcome to Mistakes Were Made, a new podcast from Citywire that asks investors about their worst mistakes and what they learned from them. Hosted by Citywire's US editor Alex Steger and head of research Frank Talbot, each week we'll hear from an investor about their gravest errors and the lessons that came from them. All in an effort to help us make better investments. Over the coming weeks, our guests will include financial advisers, fund selectors, portfolios managers, and even a celebrity (look out for that one), from the US, UK, and Europe. The jobs and locations may differ, but the lessons learned are universal. Our guest for this first episode is Daniel Crosby, a New York Times bestselling author of books such as The Laws of Wealth and The Behavioral Investor. A trained psychologist, Daniel is chief behavioral officer at Brinker Capital, a wealth and asset management business based in Pennsylvania, USA.