10 ½ Lessons from 23 years at Marshall Wace

Paul Marshall is a co-founder and Chairman of Marshall Wace Asst Management, which is Europe’s largest hedge fund overseeing $48 billion. The firm specializes in long-short equity management and notably combines fundamental investing with systematic and quantitative strategies. Paul recently authored the book 10 ½ Lessons from Experience: Perspectives on Fund Management, and the show completes a trifecta of consecutive book authors whose work I thoroughly enjoyed this summer.

Alongside his long history in the business, Paul has been deeply involved in philanthropy focused on education, and he was knighted for this work in 2016. And if that’s not quite enough, his son Winston is a band member of the popular folk rock band Mumford & Sons.

Our conversation covers Paul’s background. the history of Marshall Wace and the firm’s evolution. We touch on his thoughts about quantitative and qualitative investing and on internal and external fund management. And then we turn to his new book, covering lessons relating to market efficiency, skill, portfolio construction, shorting, man and machines, size, and careers