AlphaBlock

We are pleased to announce,?the Barometer Global Equity Fund has been recognized in the top one percentile in the Morningstar Global Equity category?in 2024, outperforming over 1,100?other global?equity?funds. This recognition reflects our commitment to innovation and delivering strong performance through a rigorous, data-driven investment process.?In December 2023, the Barometer portfolio team changed the Fund mandate from “North American equities” to “Global equities, ex-US”. Since then, the Fund invests in large-cap, international equities, excluding US-listed stocks. A key component of our success is the integration of AlphaBlock’s machine learning technology, which?provides?valuable equity screening and research. ? The Fund’s performance was +26.3% in 2024 and +10.6% YTD in 2025?and?is available to investors on FundSERV (BCM860).?The longer performance track record of the Fund is +34.9% (1-year), +11.8% (3-year), +16.0% (5-year), +8.3% (10-year). All data is current as of February 28, 2025 for Class A units (compound annual growth rates provided for periods greater than 1-year). Mukul Pal Harrison Baptist David Burrows Geoff Spidle Peter McCarthy Diana Avigdor Geoff Chisholm

?? Alphabet’s Underperformance and the Curse of Index Investing ?? Google’s parent company, Alphabet (GOOG, GOOGL), is a cornerstone of the S&P 500, commanding nearly 4% of the index. But over the past six months, 25 other S&P 500 stocks have outperformed GOOG—some by a huge margin. ?? Here’s the paradox: If you were passively invested in the S&P 500 (SPY), your money missed the gains of smaller outperformers like Ralph Lauren (RL), which surged 53.3%, despite holding only 0.2% weight in the index. Meanwhile, GOOG lagged behind, yet it continued to attract more capital just because it’s “big.” This is the curse of index investing—your money is funneled into past winners, not future performers. Passive investing isn’t neutral; it systematically bleeds returns by overweighting large-cap stocks while ignoring emerging outperformers. #endofpassive

For years, I, like many of you, believed in the promise of passive investing. The narrative was compelling: active managers are often too expensive and rarely beat the market, so why not simply buy the market through low-cost index funds and ETFs? This "wisdom" has become so ingrained that it's hard to question, but my journey through the world of finance has led me to see that this narrative is built on a shaky foundation. And that's why I wrote this book. It's not just about investments, it’s about your future and the integrity of our financial systems. #book

Machines can’t just beat the markets, they can beat them by a significant margin. A case to point is the E&R BOTZ model which rose 50% annualized over the last 24 months. #alpha

Harry Markowitz’s groundbreaking work in portfolio theory forever changed how we think about investing. His Modern Portfolio Theory (MPT), which earned him the Nobel Prize in Economics in 1990, introduced a systematic way to optimize portfolios by balancing risk and return through diversification. Inspired by earlier work on utility theory and decision-making under uncertainty by figures like John von Neumann, Oskar Morgenstern, and Leonard J. Savage, Markowitz demonstrated the profound role of convexity in simplifying financial decision-making. By connecting utility theory with the mean-variance framework, he proved that diversification could lower risk per unit of return. His concept of the efficient frontier provided investors with a clear, visual representation of optimal portfolios, helping them maximize the Sharpe Ratio—the sweet spot where return is highest for a given level of risk. However, as markets have evolved, Markowitz’s static framework has proven insufficient for addressing today’s dynamic, non-linear, and multi-dimensional financial realities. AlphaBlock #Investing #Convexity #Concavity

Merry Christmas

Merry Christmas!

???Exploring the Evolution of AI Through Mukul Pal’s Insights??? Discover the interconnected concepts shaping the future of Artificial Intelligence, as captured in this?Cluster Map?based on his thought-provoking articles. ??? From?Generalized Machine Learning?to?Compute-Light AI?and the ethical implications of rapid AI development, this map highlights how Mukul’s work connects key ideas like sustainability, conversational AI, financial strategies, and the myths of Artificial General Intelligence (AGI). ???What’s Covered? Challenges in?Statistics?and traditional methods in the AI era. Breaking down?AI hype?and "AI washing" in the market. Practical insights on?LLMs?and their real-world limitations in finance. Bold concepts like?Atlas AI?and the path to sustainability in?Compute-Light AI. ???Check out the visual representation?of Mukul’s AI-driven vision and see how these ideas influence business, society, and technology. ?? Dive deeper into the articles to explore these ideas further! Let us know which of these topics resonate with you most. What are your thoughts on the future of AI? ?? #ArtificialIntelligence #AIThoughtLeadership #MachineLearning #Innovation #Sustainability #AIApplications #Technology

???New Deep Dive Podcast Alert!???? Join us as we explore Charles Horton Cooley's groundbreaking work,?Human Nature and the Social Order. This episode unpacks the fascinating interplay between individual identity and societal forces, highlighting Cooley's concept of the?"looking-glass self"—how we shape our self-image based on how we imagine others see us. We delve into: ?? How group dynamics can amplify wisdom or madness ?? The relevance of Cooley’s insights in today’s age of social media and globalization ?? Balancing individuality with collective decision-making Don’t miss this thought-provoking conversation on timeless ideas that resonate deeply in our modern world. ?? #Psychology #Society #Leadership #Podcast