Kent Daniel — From Physics to Finance: Exploring Market Inefficiencies

In this episode of the Value Investing with Legends podcast, hosts Tano Santos and Michael Mauboussin interview Kent Daniel, a professor at Columbia Business School and expert in quantitative investing. The discussion covers Daniel's academic background, including his time at Caltech and UCLA, his research on asset pricing and behavioral finance, and his experience at Goldman Sachs. They delve into topics such as the predictability of market returns, the Fama-French three-factor model, investor psychology, tangible versus intangible information in asset prices, and the role of short selling. The conversation also explores the challenges and opportunities in quantitative value investing, the impact of market inefficiencies, and the implications of increased disagreement in financial markets.