Broken Data. Hidden Opportunity | GMO's Warren Chiang on Deep Value’s Historic Setup

GMO’s Warren Chiang joins us for a deep dive into the art and science of systematic value investing. In this episode, Warren shares how his team has refined traditional value investing to adapt to an intangible-heavy world, the structural reasons deep value is historically cheap today, and how top-down insights from GMO’s asset allocation group are implemented in practice. We also explore how ESG, momentum, macro, and geopolitical shifts—including the China decoupling—are integrated into portfolio construction, and what investors can learn from GMO’s global perspective on valuations. Topics Covered: Why GMO didn’t abandon value—it improved it The difference between "value" and "valuation" How restating financial statements improves valuation accuracy GMO’s two-step top-down and bottom-up ETF strategy The deep value opportunity: why it’s never been cheaper How GMO incorporates quality in a forward-looking way Why momentum and macro are excluded from some strategies How ESG is treated as a portfolio risk—not virtue signaling The China supply chain shift and the Beyond China strategy Passive investing’s long-term impact on price discovery Managing risk, constraints, and position sizing in quant portfolios Whether today’s market mirrors the dot-com bubble What’s driving valuation gaps across global markets