James Anderson: the trouble with the fund management industry

The fund management industry's role in aiding company development is explored through a conversation with James Anderson of Bailey Gifford. Anderson critiques the ad valorem model, suggesting fees should be tied to profit generation rather than assets under management, and expresses concern over the industry's focus on wealth accumulation over industrial creation. He highlights the importance of long-term thinking and enduring market volatility, referencing Scottish Mortgage's investment strategies. Anderson also reflects on China's economic transitions, acknowledging a misinterpretation of signals from America regarding Chinese investments. He further touches upon opportunities in sectors like synthetic biology, exemplified by Ginkgo Bioworks, and emphasizes the need for imagination and innovation in investment strategies.