Capital Allocators Monthly Newsletter - January 2023

1. Small Cap Value:  Opportunity from the downturn. I’ve allocated some capital to small-cap value in the U.S. Contrarian-minded value investors GMO and Verdad both shared their takes on the attractiveness of the opportunity set.

Read Verdad’s ‘Dot-Com Redux’

2. Evaluating Character, Ted Gioia. Music critic and art historian Ted Gioia offers a perspective on evaluating people from a different lens than the investment world.

3. Misaligned Incentives. U.S. Public Pensions with trillions of dollars are managed by small, poorly compensated teams. The misalignment has led to poor performance and a revolving door of employees for years. Canada and Australia have created organizations with better alignment and far better results. Can the U.S. figure it out?

4. The Psychology of Spending, Morgan Housel. Morgan dives into the challenges we face in turning what we “should” do and what we actually do.

5. The Psychology of Eating, Joy Lere. Joy is Brian Portnoy’s co-founder at Shaping Wealth and takes a psychologist’s perspective on better eating.