Interest Rates, Duration, and Market Levels

Randy outlines how large real rate moves affect equity duration and offers two explanations for current market prices.

Play episode from 46:15

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Episode notes

Today’s guests are Owen Lamont, a Portfolio Manager at Acadian Asset Management, and Randy Cohen, a finance and entrepreneurship professor at Harvard Business School and co-founder of PEO Partners, which is a leader in the emerging liquid Private Equity alternatives space.

In today’s episode, Owen Lamont and Randy Cohen begin with a deep dive into private equity, how to model it in public markets, and why investors are searching for liquid ways to access private-market-like returns. They challenge common views on concentration, market valuations, and explain how investors should think about bubbles and technological change. They also discuss whether the US stock market is Koreafying and the long-term forces that could shape the investing landscape.

(0:00) Starts

(0:34) Welcome Owen and Randy

(5:14) Private equity overview

(9:20) Liquid private equity

(20:05) The US stock market is Koreafying

(24:29) The IPO landscape

(36:03) CAPE Ratio and AI

(44:45) Best ideas investing

(58:44) Deglobalization increases the benefits of diversification

(1:00:36) Randy's five future fears

(1:11:09) Book recommendations

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