This podcast episode delves into the intricate relationship between quantitative and fundamental analysis in finance, using Amazon as a case study to highlight the counterintuitive nature of cost of capital amidst growing profitability. Clayton emphasizes the necessity of integrating fundamental insights into quant strategies to better navigate market dynamics and improve investment outcomes, particularly during periods of regime change. By advocating for collaboration between quants and fundamental analysts, he posits that a blended approach can lead to superior investment strategies, enriched by a deeper understanding of inherent biases and market behaviors.
