The Physical Economy: Where AI Meets Value Investing

In today's episode, we welcome Don Wordell, CFA, Chief Investment Officer of Ceredex Value Advisors, an institutional asset manager specializing in value-oriented domestic small, mid and large cap equity strategies. Don has been with the firm since 1996, starting with Ceredex’s predecessor firm as a research analyst covering value equity strategies. He became portfolio manager of the Mid-Cap Value Equity strategy in 2001 and portfolio manager of the Small Cap Value Equity strategy in 2023. Don earned a B.S. in finance and an M.B.A from the University of Central Florida. He has been a Chartered Financial Analyst (CFA®) charterholder since 2004.

In our conversation, Don discusses his transition into the CIO role, Ceredex's investment philosophy, and why valuation alone is never enough to make a stock attractive. We explore the changing small-cap landscape, the impact of private equity on public markets, and why active management remains critical in less efficient areas of the market.

A major focus of the discussion is the emergence of the "Physical Economy." While much of the market remains focused on software and mega-cap technology companies, Don argues that many of the most compelling AI-related opportunities may be found in the power, infrastructure, manufacturing, cooling, and data center ecosystems required to support AI's growth.

Today's hosts are Steve Curley, CFA (Co-Managing Principal, 55 North Private Wealth) and Jeff Goll, CFA (Head of Capital Markets, Hillpointe)

Please enjoy the episode. You can follow us on LinkedIn or at InvestorsFirstPodcast.com.

Show Notes:

• Whitepaper: Finding Value in the Physical Economy: https://www.ceredexvalue.com/articles/finding-value-in-the-physical-economy
• Ceredex Value Advisors: https://www.ceredexvalue.com

Past guest include Cliff Asness, Jason Zweig, Annie Duke, Morgan Housel, Raphael Bostic, and many more.