Insights

Garrett, Bernd and Andrew have all featured in a variety of articles, essays and videos, which you can access here:

Article

Value Investing

Discussing value as an investment style relative to growth in the current market environment.

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Article

The Small-Cap Dilemma

Examining the benefits of small caps as an asset class as well as the challenges associated with it for institutional investors.

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Educational Videos

Here are some educational videos which we’ve made or featured in, which help to explain some of the principles which make up our investment approach:

GSI – Beyond the Cap-Weighted Index

Dr. Nick Motson of Cass Business School discusses issues with investing in market-weighted index portfolios, which tend to be heavily concentrated in a small number of mega-cap stocks. Alternative, more diversified approaches have  generated superior risk-adjusted returns in the past, mostly due to their exposure to value and size factors.

A Dummy’s Guide to Smart Beta, part three

The term “beta” was first introduced by Nobel Laureate William Sharpe in the 1960s. In simple terms, it denotes the risk of the stock market. But in the intervening half a century, several other risk factors have been identified and quantified. Features Garrett and Bernd on GSI’s model, which increases diversification in a cap-weighted portfolio to smooth out the highs and lows.

 
 

Passive Investing Theory, part four: Portfolio Theory

Diversification has been called ‘the only free lunch in investing’ and is the driver behind Portfolio Theory, developed in 1952 by Harry Markowitz and later expanded upon by William Sharpe in his Capital Asset Pricing Model, and Eugene Fama and Kenneth French in their Three Factor Model. With contributions from Garrett and Bernd.

 
 

Passive Investing Theory, part two: The Random Walk

Exploring the foundations of passive investing and the men who brought it to global significance. This video describes the Random Walk theory: the belief that share prices are not predictable as they are based on reaction to information that is being fed into the market completely randomly. Features Bernd, alongside other industry specialists.