Ep. 85: Factor Investing, Avoiding Value Traps, and AI in Asset Management, with Avantis CIO Eduardo Repetto (09/16/26))

In episode 85, hosts Jim Worden and Paisley Nardini are joined by Eduardo Repetto, Chief Investment Officer of Avantis Investors, for a conversation on factor-based investing and portfolio construction. They discuss how Avantis grew to roughly $170 billion in assets in the seven years since its launch, how the firm defines value differently than some industry benchmarks, and how it tries to avoid classic value traps. They also cover how Avantis uses advisor and client feedback to guide new product development, where AI fits into an asset manager's day-to-day work, and Eduardo's perspective on long-term return expectations for stocks versus bonds.

• Eduardo Repetto says Avantis has grown to roughly $170 billion in assets under management in the seven years since its 2019 launch, which he attributes to competitive pricing, strategy quality, and service rather than any single secret.

• He describes Avantis's approach to value investing as more holistic than some industry benchmarks, weighing a company's full financial picture (balance sheet and cash flows together) rather than a single metric, which he says helps avoid classic value traps.

• On portfolio construction, Eduardo Repetto notes that a security's weight in a portfolio should shrink as its price falls, cautioning that a naive, equally weighted approach can compound losses in a deteriorating position.

• He says Avantis develops new products by listening to recurring needs from advisors and clients, pointing to two recently launched lower-tracking-error strategies as an example of demand-driven product development.

• On AI, Eduardo Repetto describes it as a productivity tool that can speed up tasks like first-draft research and presentations, while cautioning that outputs still need to be checked, citing a case where AI produced an inaccurate description of his own firm.

• He discusses Avantis's relationship with parent company American Century Investments, including American Century's structure as a private company whose controlling shareholder is a nonprofit medical research institute.

• Looking at current bond yields relative to history, Eduardo Repetto says he remains more constructive on long-term equity returns, while acknowledging markets will always have periods of volatility and eventual drawdowns.

Hosts: Jim Worden, Chief Investment Officer, The Wealth Consulting Group & Paisley Nardini, CFA, CAIA, Managing Director, Simplify Asset Management.

Guest: Eduardo Repetto, Chief Investment Officer, Avantis Investors.

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