Minisode: Is it Easier to Pick the Losers than the Winners?
About This Episode
The problems of active management have been well documented. It has been statistically proven that it is incredibly difficult to identify managers who will outperform the market on a risk-adjusted basis. Those managers make a living by picking winning stocks that are likely generate above-market returns. My guest today, David Barse, has built a company around the premise that it is easier beat the market by identifying the losers rather than the winners.
About Our Guest
David is the founder and chief executive officer of XOUT Capital®, an index company specializing in identifying which companies not to own or “XOUT." XOUT’s first index, the XOUT U.S. Large Cap Index (ticker: XOUTTR), evaluates the 500 largest U.S. companies and determines how each company is addressing the challenges of technological disruption.
David previously served as the CEO of Third Avenue Management for 25 years, a pioneer in fundamental, bottom-up deep-value investing.
Here is a link to XOUT Capital® where you can find more information about David and his company.