Gregg Fisher Sold a Drum Kit, Parlayed It Into a $3 Billion Firm
He was one of the first money managers to deploy factor-investing strategies at his firm Gerstein Fisher, but now Gregg Fisher is trying something new: A quantitative approach to picking stocks of innovative small-cap companies at his new shop Quent Capital.
Fisher joined this week’s “What Goes Up” podcast to discuss why he’s shifting to a more-active style of investing and how, despite his subsequent success, he wishes he could buy back that old drum set he sold for $900 in order to purchase a computer and start his first firm in the 1990s.
Some highlights of the conversation:
“For the last 30 years I've been basically telling the world, ‘You should build market-based portfolios, keep turnover down, keep taxes down, keep an eye on your costs, you know, buy and hold.’ These things still work. They'll always work. But what I watched is indexing go from like zero to a lot, all of a sudden… So if you're in an environment where lots of people are indexing and there's fewer people paying attention to what the price should be, if you're in an environment where the difference between winners and losers is greater, it's my belief that at least for some portion of someone's portfolio — and probably not the majority of it, by the way — but for some portion of someone's portfolio, having a strategy that could take advantage of those themes and trends, I think is important.”
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