Gleich: Investment edge comes from either interpretational skill or mosaic-theory data
Kristof Gleich · Kristof Gleich – Boutique Managers and Active ETFs at Harbor Capital (EP.411) · Oct 10, 2024 · at 41:23
Kristof Gleich, President and CIO of Harbor Capital Advisors, explains to Ted Seides the two primary categories of competitive edge Harbor looks for when selecting boutique fund managers.
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“Generally, I think there's two different camps that skill or edge fall into. You either, number one, have an interpretational edge, which is where you're privy to the same information as everybody else, but you interpret it in a different way and are on average more right than wrong. And then there are managers that have an informational edge. Now I have to be careful when I say informational edge, because obviously Reg FD, when did Reg FD come in the early 2002 1002 1001, something like that, which essentially meant all investors needed to get access to the same information at the same time. And you certainly can't trade or invest on any material non-public information, but in the era of technology, And data, if you go looking for it and are creative, there are ways that you, through a mosaic theory, I think, can get an informational edge.”
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