Milgram: Outsourcing investment decisions creates fee-motivated misalignment
Andrew Milgram · The Data on America's Economic Split | Andrew Milgram Interview · Invest Like The Best · Aug 5, 2025 · at 1:26:13
Andrew Milgram, Co-CIO of Marblegate Asset Management, critiques institutional asset managers for relying on automated models and external consultants instead of direct underwriting.
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“I would also say one of the things I don't like that's happening out there is the productization of investment decisions. So there's a lot of outsourcing of critical thinking because I can go to this person that can, that'll make this decision for me, and I'll go to this person who'll make that decision for me. And so again, we're bankrupting the decision-making process. The investor, if that's even what you want to call them, it becomes more of a general contractor and they're not actually doing anything. And I don't think adding a whole lot of value other than Choosing other people to do the thinking who, by the way are misaligned because those folks are motivated by a stream of fees rather than an investment outcome.”
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