Robots Are Eating Money Managers’ Lunch

Head over to Bloomberg for a profile of Orthogon Partners, a fund specialized in esoteric assets. As passive and algorithmic investing is increasing taking share from active, human management, Rishi Ganti is looking at obscure and complex assets to find value: 

esoteric assets—the most obscure stuff he can find. He’s arranged alternative funding for charter schools in the U.S. and paid cash upfront to collect judgments due at Brazil’s supreme court. His team also has purchased nonperforming loans at a discount in Portugal and partnered with local experts in Mexico to fund government infrastructure programs. It’s even provided interim financing for refugee camps in Italy. The point about these investments, he says, is that they require “high human capital” to manage, even if they’re plentiful. “It’s like dark matter,” Ganti says. “They dwarf the visible stuff lit up by markets.”

 

Robots Are Eating Money Managers’ Lunch