The World Is Changing Faster Than Markets Can Process (Featuring - Andre Perold)

In Episode 19, Julie sits down with Andre Perold, CIO of HighVista Strategies, to discuss biotech, small buyouts, risk, the real definition of a mistake, diversification, why some of the most interesting investors are what he calls "small geniuses" operating far from Wall Street's spotlight until great performance attracts more capital and the search for the next small genius begins again, and more. More than a decade ago, Julie wrote a story called "Is Alpha Dead?" The premise was simple: Markets had become so competitive, so efficient, and so crowded that generating excess returns was getting harder and harder. Perold argues that we're living through a period of such rapid technological and economic change that opportunities for alpha may actually be expanding. In a world shaped by artificial intelligence, breakthroughs in healthcare, and shifting business models, markets don't always adapt as quickly as investors assume. As Perold says, “the ability to get an edge is much greater when new things are happening, for better or worse. You can see things, understand things, and react more easily in this new world.” That doesn't mean alpha is easy to find. Perold has always believed investors need to look in what he calls "beautifully inefficient" markets, smaller corners of the investing world where size, specialization, and human behavior still create opportunities. That may be more important than ever.