Jacobs Levy: The Art and Science of Investing

Good investing requires skill and discipline
Jacobs Levy Equity Management is an unconventional investment firm. It combines the science of quantitative methods with the art of investing that comes from intuition and experience. The firm has a 30-year performance record and manages over $13 billion in assets for prestigious clients around the world.
Founders Bruce Jacobs and Ken Levy met in the 1980s in the finance doctoral program at the Wharton School of the University of Pennsylvania, and they discovered that they shared an interest in investment management. After Wharton, they each found opportunities at Prudential Asset Management Company, the investment arm of Prudential Insurance. Five years later, they set up their own firm to pursue the idea of using quantitative methods to disentangle market opportunities. They researched their investment approach full time for three years before introducing it to clients. The concept of disentangling has since been recognized by the investment and academic communities.
The firm offers a variety of strategies, some of which include shorting and leverage, which are used with caution. The use of leverage entails unique risks that are not formally considered in traditional investment practice.
In his interview, Jacobs explains some of the firm’s revolutionary investment concepts and cautions investors about some aspects of today’s markets. He also discusses the integration of environmental, social, and governance (ESG) principles into the investment process. Viewers will gain an understanding of what it takes to stand out as an investment manager in today’s competitive landscape.