Patrick Gelshenen – The Factor of Cap Weight (EP.29)
Patrick Gelshenen – The Factor of Cap Weight (EP.29)
Phil and Josh get quanty with Patrick Gelshenen, Execusitve Directive of TOBAM. They discuss quantitative portfolio factors, and whether market cap weighting is itself a factor. The three discuss when market cap weighting tends to perform well, and when it doesn’t. Patrick emphasizes his firm’s approach to diversification while Phil and Josh wonder if the market environment has contributed to the idea that market cap weighting is sufficient as an investment thesis.