André Perold – Investing Through Exponential Change (EP.516)

Navigating an era of exponential change requires separating investment opportunities from broader societal concerns. Andre Perold, CIO of HighVista Strategies, advocates for focusing on "beautifully inefficient markets"—such as biotech, small-cap buyouts, and specialty credit—where deep, local specialization provides a competitive edge. These markets offer outsized alpha because they remain difficult for large, generalist capital to penetrate. To manage this complexity, HighVista employs a "two-brain" strategy, balancing AI-exposed investments with "anti-AI" assets, while utilizing AI tools to streamline underwriting and source deals. As private equity faces liquidity challenges and lower DPI, the firm increasingly targets continuation vehicles and early-stage partnerships to capture value. Success hinges on maintaining rigorous, original thinking and sourcing talent that can adapt to rapid technological shifts, rather than relying on traditional, broad-market index strategies.