Money Maze Podcast - 65: Karen Karniol-Tambour, Co-Chief Investment Officer for Sustainability at Bridgewater, the $160 Billion Hedge Fund, on Today’s Economic Landscape

65: Karen Karniol-Tambour, Co-Chief Investment Officer for Sustainability at Bridgewater, the $160 Billion Hedge Fund, on Today’s Economic Landscape

05/19/22 • 50 min

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn

Ray Dalio has described today’s guest, “as a vacuum cleaner of learning”, and in this episode Karen Karniol-Tambour exhibits a formidable grasp of the challenges of today’s investing environment.

The conversation begins with a review of the current monetary challenge facing the Fed and leads into the dilemma for investors weaned on variations of the 60/40 benchmark.

She explains Bridgewater’s enthusiasm for inflation protection, for owning important exposure to broad commodities, through to the role gold should play. At the same time she explains succinctly why US equities might be the worst performing asset class in the decade ahead.

She discusses why currencies could be an important source of return in a world of lacklustre performance, in a re-visit of the 1970s and 1980s.

Karen finally explains how Bridgewater think about the systematic and fundamental way of approaching sustainable investing, as well as the sustainable fund that they have developed.

The Money Maze Podcast is sponsored by Schroders, Bremont Watches and LiveTrade.

Schroders is a global investment and wealth manager, with a purpose to provide excellent investment performance to clients, through active investment management.

Bremont is an award-winning British company that produces beautifully engineered chronometers, designed to appeal to those who share the appreciation of a beautiful mechanical wristwatch.

LiveTrade has changed the way fine wine is bought and sold worldwide. You can instantly buy and sell - or place bids and offers on - key wines from Bordeaux, Champagne, Italy and other world regions.

Previous Episode

Wine - To Invest or Consume? Gary Boom, Founder & CEO of Bordeaux Index [REPLAY]

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn

To celebrate our new sponsorship with LiveTrade, Bordeaux Index's new world-leading fine wine trading platform, we're pleased to be replaying our episode with Gary Boom. Originally recorded last summer, he discusses why he started the business and examines the investment opportunities in the fine wine and spirits market.

In this episode Gary Boom, CEO of Bordeaux Index starts by explaining how the poorly organised, past its sell-by- date old model of wine trading has been revolutionised by Bordeaux Index over the last 20 years, with the introduction of scale, liquidity and expertise underscoring the investment attributes of fine wines and whiskies.
The conversation examines long term data provided by Credit Suisse who found that post-World War Two, collectible wines have delivered returns of circa 10% nominal, and real returns of around 7% USD (per annum) . Gary discusses the composition of returns and the indices used to measure them, and explains why consumption creates a virtuous circle, where replacement and scarcity provide strong tailwinds. He talks about the liquidity provided by Live Trade, which they established and which provides narrow bid/ask spreads in over 500 wines.
He talks about the Chinese influence in buying high-end Bordeaux wines, the Champagne and Burgundy markets’ evolution as well as how challenges around counterfeiting are being met.
With reference to the late Stephen Spurrier, he discusses the rise of some of the great new world wines which wines he believes will prove good investments and how family offices and wealthy individuals can build significant portfolios of wine to take advantage of its lower correlation to other assets.
He speaks about climate impact on wine producing regions, his gloomy view on UK wines and why Bollinger Group has taken a stake in their business.
Finally he talks about why wine has proved and continues to be a great career for both sexes, some advice for today’s youth, and whose wines and their owners he would most like to meet and drink.

Next Episode

66: £1.4 Trillion in Assets, £2 Billion of Profit: Sir Nigel Wilson, CEO of Legal and General, Explains The Opportunities Ahead

Sign up to our newsletter for more in-depth insights | Follow us on LinkedIn

In an investing world where the “new thing” can too easily grab investor attention, sometimes it’s the case that an institution, especially one almost 200 years old, may be considered less relevant.

So in this episode we welcome on Sir Nigel Wilson, one of the longest serving FTSE 100 CEOs. He was knighted for his contributions to finance & regional development, and for running the 2nd largest institutional asset manager in Europe.

Sir Nigel Wilson discusses the business today, and how it has evolved. He explains their asset management and asset origination, marrying long-term capital with a strategic vision. He also covers their investments in key areas of infrastructure, housing, and the growing pension risk transfer market.

He goes on to explain their approach to inclusive capitalism, their expansion overseas, how the market views their valuation, the stock’s important yield and why he has had such long tenure as a CEO.

The Money Maze Podcast is sponsored by Schroders, Bremont Watches and LiveTrade.

Schroders is a global investment and wealth manager, with a purpose to provide excellent investment performance to clients, through active investment management.

Bremont is an award-winning British company that produces beautifully engineered chronometers, designed to appeal to those who share the appreciation of a beautiful mechanical wristwatch.

LiveTrade has changed the way fine wine is bought and sold worldwide. You can instantly buy and sell - or place bids and offers on - key wines from Bordeaux, Champagne, Italy and other world regions.