Investment Management Strategies

1:10–1:40 pm ET

Thoughts on Working through a Dramatic Down Cycle

Howard S. Marks, CFA
Oaktree Capital Management

Interviewer: John Authers, ​Opinion Columnist, Bloomberg
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11:00–11:45 am ET

The Value of Everything in an Unstable Environment

Aswath Damodaran
Kerschner Family Chair Professor of Finance​
Stern School of Business, New York University

Considering valuation principles in light of the COVID-19 crisis:

  • Valuation first principles have not changed just because of the crisis, but investors have to be willing not only to make estimates about the damage that the crisis will cause to corporate earnings but also to think about what a company will look like in the post-coronavirus economy.
  • If you are tempted to use multiples and pricing because you don’t want to make assumptions in the fact of uncertainty, you will find uncertainty affecting you in different ways, with trailing numbers moving dramatically and multiples becoming either not meaningful or not usable.
  • Difficult times require dynamic models, where forecasts of the past are not anchored in past numbers. In other words, mechanical models (which is what many DCF models have become in practice) will yield strange-looking numbers.
  • Ultimately, crises are crucibles that test investor faith and philosophies, and this crisis will be the acid test for active investing, in general, and value investing, in particular.

Speaker Presentation
Supplemental Material
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12:05–12:25 pm ET

Investing in Disruptive Innovation: How Innovation Gains Traction during Tumultuous Times

Catherine D. Wood
CEO and Chief Investment Officer
ARK Investment Management LLC

  • We are experiencing a shock to the financial system, but the forces in motion before this shock will continue. We have experienced two prior shocks in the last 40 years:
    • Portfolio insurance failed in October 1987
      Low volatility strategies this time around
    • Terrorist attack on 11 September 2001
      Coronavirus outbreak this time around
  • Thee variables can serve as a guide to investors: monetary policy, fiscal policy, market signals
  • Innovation gains traction during tumultuous times. For example, in health care, the convergence of artificial intelligence (AI), next-generation DNA sequencing (NGS), and CRISPR gene editing have the potential to transform health care completely.

Speaker Presentation
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12:25–12:45 pm ET

Asset Allocation for Private Clients: Lessons Learned amid Stressed Markets

Katherine Nixon, CFA
​Executive Vice President and Chief Investment Officer, Wealth Management​​
Northern Trust

  • How can we prepare for the inevitability of market stress?
  • What are the major takeaways from the COVID-19-led market drawdown, and how can we apply these to improve future client outcomes?
  • Can long-term portfolios be designed to mitigate both investment risks and client behavioral risks

Speaker Presentation

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12:45–1:05 pm ET

The Enhanced Importance of Investing with Impact

Katherine Collins, CFA
​​Head of Sustainable Investing
Putnam Investments

Interviewer: Lauren Foster, Content Director, Live Events, CFA Institute
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