Gus Sauter: Efficient Markets Are a Good Thing
Vanguard's retired global CIO riffs on indexing, market efficiency, governance, alternative investing, and more in this wide-ranging conversation.
Our guest this week is Gus Sauter. Gus served in a variety of roles during his 25-year career at the Vanguard Group, most recently as the firm's chief investment officer. Gus oversaw the management and growth of Vanguard's index fund and ETF business. At the time Gus joined Vanguard, that business consisted of two index funds, with around $1.1 billion in assets. By the time Gus retired from Vanguard in 2012, he was running the firm's global investment management group overseeing nearly $2 trillion in assets. In addition to these achievements, Gus has built Vanguard's quantitative-investing capability and devised the novel structure the firm employs in offering ETFs as a separate share class of its funds. Today, Gus is on the dean's council at the University of Chicago, and also serves on a number of investment committees.