You're listening to a share these podcast. I guess a few things that we would look at as an active investment manager would be undervalued stocks, or in fact overvalued stocks in terms of the decision to sell. But let's take an undervalued stock. For example, there might be a really well run company that has some temporary bad news that's going to affect the share price. A passive fund will take that bad news and it'll just hit the index. An active manager will look at that bad news and say, hmm, does that bad news fundamentally change the strategic price of this company and its outlook? Take for example, in video sold off a couple of weeks ago on the Deep seek News twenty percent. I think drop on the day.

You're listening to a share these podcast. I guess a few things that we would look at as an active investment manager would be undervalued stocks, or in fact overvalued stocks in terms of the decision to sell. But let's take an undervalued stock. For example, there might be a really well run company that has some temporary bad news that's going to affect the share price. A passive fund will take that bad news and it'll just hit the index. An active manager will look at that bad news and say, hmm, does that bad news fundamentally change the strategic price of this company and its outlook? Take for example, in video sold off a couple of weeks ago on the Deep seek News twenty percent. I think drop on the day.

Yeah, massive, like a trillion dollar loss.

Yeah, massive, like a trillion dollar loss.

But absolutely however, fundamentally quite a strong company. So a number of active managers at that point might have gone, you know what, we might be continuing to hold, or we might acquire a little bit over this period of time as we see how that Deep seek news plays out.

But absolutely however, fundamentally quite a strong company. So a number of active managers at that point might have gone, you know what, we might be continuing to hold, or we might acquire a little bit over this period of time as we see how that Deep seek news plays out.

If we're looking at the activity that you do as an active fund manager, you're kind of testing the market, aren't you. You're kind of discovering prices so to some extent, then are the passive funds kind of taking a bit of a free ride on you.

If we're looking at the activity that you do as an active fund manager, you're kind of testing the market, aren't you. You're kind of discovering prices so to some extent, then are the passive funds kind of taking a bit of a free ride on you.

Well, I think the passive funds aren't really doing too much. I mean, the passive funds, in my eyes, are like a train getting from A to B on a train track. You know. The active funds are probably more like having a GPS in there and they're kind of going, oh, my goodness, there's a bit of traffic here, or there's a bit of weather here, and therefore we're going to have to take this route to get there quicker or faster, Whereas the train you kind of just actually that noise in the market you're probably not making decisions on because you are just buying the index and you're taking the ups and downs with the index. I think one of the bigger risks that those are in passive funds need to consider obviously, is that you know, in periods of under perform months, you will just take the underperformance, whereas an active manager will be working hard to consider where the opportunities are to beat the index in terms of that underperformance. They might be doing that maybe because you know, they've recognized the market trend. For example, one market trend. You know that I kind of look back in our portfolios is around Spotify. At the beginning of COVID. You know, we were looking at what Spotify might do, where they're going to play a place in streaming, where are they going to play a place in podcasts, Through research, through insights, through for sights, I guess on what might happen at an industry level.

Well, I think the passive funds aren't really doing too much. I mean, the passive funds, in my eyes, are like a train getting from A to B on a train track. You know. The active funds are probably more like having a GPS in there and they're kind of going, oh, my goodness, there's a bit of traffic here, or there's a bit of weather here, and therefore we're going to have to take this route to get there quicker or faster, Whereas the train you kind of just actually that noise in the market you're probably not making decisions on because you are just buying the index and you're taking the ups and downs with the index. I think one of the bigger risks that those are in passive funds need to consider obviously, is that you know, in periods of under perform months, you will just take the underperformance, whereas an active manager will be working hard to consider where the opportunities are to beat the index in terms of that underperformance. They might be doing that maybe because you know, they've recognized the market trend. For example, one market trend. You know that I kind of look back in our portfolios is around Spotify. At the beginning of COVID. You know, we were looking at what Spotify might do, where they're going to play a place in streaming, where are they going to play a place in podcasts, Through research, through insights, through for sights, I guess on what might happen at an industry level.

It must be hard to filter that noise out of the market that you were talking about there, because there just seems to be so much going on.

It must be hard to filter that noise out of the market that you were talking about there, because there just seems to be so much going on.

It's funny, I was reading something the other day around the noise in the market has never been greater. You know, take America for example. In the past, decision would be made in the White House, they would then be well thought about and pushed out publicly. But today decisions are being discussed in real time like theater. Effectively, you're watching you're watching what's happening out there. But it is really important to get back down to the fundamentals of a company that you're investing in, the fundamentals of a region, or the fundamentals of a sector in terms of where we might play and shuffle investments around in those spaces and the noise has to be filtered, otherwise you kind of drown. Investing involves a risk you might lose the money you start with. We recommend talking to a licensed financial advisor.

It's funny, I was reading something the other day around the noise in the market has never been greater. You know, take America for example. In the past, decision would be made in the White House, they would then be well thought about and pushed out publicly. But today decisions are being discussed in real time like theater. Effectively, you're watching you're watching what's happening out there. But it is really important to get back down to the fundamentals of a company that you're investing in, the fundamentals of a region, or the fundamentals of a sector in terms of where we might play and shuffle investments around in those spaces and the noise has to be filtered, otherwise you kind of drown. Investing involves a risk you might lose the money you start with. We recommend talking to a licensed financial advisor.

We also recommend reading product disclosure documents before deciding to invest.

We also recommend reading product disclosure documents before deciding to invest.