Andrew Ang: Should AI Agents Run Your Asset Allocation? | #653

My guest today is Andrew Ang, Founder of Tau Balance and professor at Columbia University. He previously ran factor investing at BlackRock.

In today's episode, Andrew explains how a swarm of AI agents can reinvent the investment workflow rather than automating pieces of it. He shows how specialized agents, each running its own asset class or portfolio method, vote on one another's allocation calls. He also argues for diversification across signals, factors and time. To close, Andrew reveals how the quiet drag of taxes erases roughly 36% of a stock investor's returns over 30 years.

(0:00) Starts

(3:09) The Self-Driving Investment Portfolio with AI

(8:08) Evaluating AI-Driven Investment Outputs

(14:41) Multi-Level Diversification in Factor Investing

(22:08) Factor Weighting, Timing, and Model Diversification

(24:27) The Long-Term Drag of Taxes on Equity Returns

(33:24) Rising Taxes: Strategies and Asset Location

(37:53) Tax Alpha vs. Investment Alpha & Market Impact

(42:08) Tax-Aware Bond Strategies

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Past guests include Ed Thorp (mebfaber.com/2017/02/08/10017), Richard Thaler (mebfaber.com/2021/08/04/e337-richard-thaler), Jeremy Grantham (mebfaber.com/2021/02/08/episode-286-jeremy-gra…), Joel Greenblatt (mebfaber.com/2020/10/28/episode-260-joel-green…), Campbell Harvey (mebfaber.com/2019/08/28/episode-172-cam-harvey…), Ivy Zelman (mebfaber.com/2022/03/30/403-ivy-zelman), Kathryn Kaminski (mebfaber.com/2021/05/12/e310-kathryn-kaminski), Jason Calacanis (mebfaber.com/2017/08/30/episode-69-jason-calac…), Whitney Baker, (mebfaber.com/2022/01/31/e387-whitney-baker) Aswath Damodaran (mebfaber.com/2019/05/10/episode-155-aswath-dam…), Howard Marks (mebfaber.com/2018/10/03/episode-124-howard-mar…), Tom Barton (mebfaber.com/2018/10/10/episode-125-tom-barton…), and many more.

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Editing and post-production work for this episode was provided by The Podcast Consultant (thepodcastconsultant.com).