Masters in Business: Citi Wealth Chief Investment Officer Kate Moore on Macro Investing
Release Date: July 3, 2025
In this insightful episode of Bloomberg's "Masters in Business," host Barry Ritholtz engages in a comprehensive conversation with Kate Moore, the Chief Investment Officer (CIO) at Citi Wealth. With a portfolio overseeing over a trillion dollars in assets, Kate offers a wealth of knowledge on macro investing, thematic strategies, and the evolving landscape of wealth management.
1. Introduction to Kate Moore
Barry Ritholtz introduces Kate Moore as a seasoned professional with a distinguished career spanning renowned financial institutions, including Morgan Stanley, Moore Capital, Bank of America Merrill Lynch, JP Morgan, and BlackRock. His introduction emphasizes Kate's extensive experience on both the buy side and sell side, highlighting her unique qualifications for her current role at Citi Wealth.
Quote:
"The breadth and depth of her experience makes her uniquely situated to be a chief investment officer."
— Barry Ritholtz [01:35]
2. Academic Background and Career Path
Kate shares her academic journey, beginning with a Bachelor's in Political and Social Thought from the University of Virginia and a Master's in Political Economy from the University of Chicago. Initially aspiring to an academic career, she pivoted to the financial industry after realizing the extensive time commitment required for a PhD.
Quote:
"I found, once I was there, honestly, that many people in my program are taking eight to 10 years to get through their PhD and becoming so specialized in very arcane topics. And it was not appealing to me since I had already worked and everything. So I left after my master's."
— Kate Moore [04:45]
3. Investment Philosophy and Strategies
a. Interdisciplinary Approach
Kate emphasizes the importance of an interdisciplinary approach to investing, integrating insights from politics, economics, human behavior, and behavioral economics. This holistic perspective allows her to navigate complex, multivariable investment puzzles effectively.
Quote:
"The best macro investors are able to pull in different inputs from policy and politics. It's also really helpful to understand human behavior."
— Kate Moore [05:35]
b. Thematic Investing
Kate delineates three primary types of thematic investing:
- Long Duration, Slow Bleed Themes: Focused on gradual transitions, such as reducing plastics in goods.
- Discontinuous Change, Catalyst-Driven Themes: Tactical and actively managed, often based on specific catalysts and concentrated in a few names.
- Business Cycle Thematic: Aligning investments with different phases of the economic cycle, similar to sector rotation or the investment clock.
Quote:
"There are three ways at this time to approach thematics... long duration, slow bleed; discontinuous change, catalyst-driven; and business cycle thematic."
— Kate Moore [24:06]
c. Macro Investing
Understanding macroeconomic indicators, government policies, and economic data is foundational to Kate's investment strategy. She champions the integration of macro perspectives with fundamental analysis and sentiment positioning to determine optimal entry and exit points.
Quote:
"Nothing makes the hair on the back of my neck go up more and kind of me bristle than to hear I don't pay attention to macro because I just pick good companies."
— Kate Moore [30:37]
4. Transition to Citi Wealth
Kate discusses her move to Citi Wealth as a strategic shift towards the wealth management sector, recognizing its consistent growth potential. Her decision was influenced by Citi's global presence, especially in Asia, and her desire to leverage her multi-asset and asset allocation expertise to serve a broader client base.
Quote:
"Citi was already in this massive transformation... I want to be someplace where I can be entrepreneurial, where I'm going to be supported by the overall platform."
— Kate Moore [12:58]
5. Current Market Environment (2025)
a. Economic Outlook
2025 has been marked by significant volatility, influenced by factors such as tariffs, policy uncertainties, and shifting global supply chains. Kate expresses concern over the potential for slower economic activity in the latter half of the year, citing reduced corporate investment and cautious labor market dynamics.
Quote:
"I am deeply worried about what's going to happen to the economy over the summer and into the beginning of 2026."
— Kate Moore [50:45]
b. Impact of Tariffs
Tariffs, especially sector-specific ones on semiconductors, pharmaceuticals, and steel, pose long-term challenges. Kate anticipates that these tariffs will continue to affect global supply chains and corporate capital expenditures, potentially leading to slower growth.
Quote:
"Sectoral tariffs... are much stickier and frankly have much greater potential impact than the country-to-country bilateral reciprocal tariffs."
— Kate Moore [60:58]
c. Banking Sector Resilience
Despite broader economic concerns, the banking sector, particularly Citi, has shown robust performance through cost management, strategic mix shifts, and leveraging the wealth business segment. Kate highlights Citi's ability to adapt swiftly to changing market conditions.
Quote:
"The mix shift has actually contributed to earnings... I expect it will continue."
— Kate Moore [57:01]
6. Behavioral Economics and Client Guidance
Kate integrates behavioral economics into her investment approach, utilizing sentiment indicators and understanding client biases to guide investment decisions. She underscores the importance of distinguishing between soft sentiment data and hard economic indicators, advocating for a balanced assessment to inform client strategies.
Quote:
"Understanding that you don't have infinite time, you make better decisions."
— Kate Moore [73:42]
7. Future of Investing and Generational Shifts
Kate anticipates a shift in wealth management driven by generational transitions, with younger investors favoring ESG (Environmental, Social, Governance) criteria and mission-aligned investments. She notes the democratization of alternative investments through more liquid vehicles, broadening access beyond traditional institutional channels.
Quote:
"The investment opportunity set for all this wealth creation is huge... the flavor of investing is changing."
— Kate Moore [40:11]
8. Advice to New Graduates
Kate advises recent graduates to maintain an open mind and embrace flexibility in their career paths. She emphasizes the importance of continuous learning, interdisciplinary studies, and adaptability in the face of industry disruptions and evolving technologies.
Quote:
"Your goal is to be a sponge and to learn and learn and learn and also to be patient."
— Kate Moore [74:44]
9. Personal Insights: Reading, Mentors, and Hobbies
Away from her professional life, Kate shares her passions and personal interests. As an avid reader, she enjoys science fiction and fantasy literature, with favorites including the "Murderbot" series by Martha Wells and contemporary mysteries by Tana French. Kate also dedicates time to conservation efforts with the Grand Teton National Park Foundation, highlighting her commitment to environmental stewardship.
Quote:
"I'm in an amazing series right now, the Murderbot series by Martha Wells... I'm super passionate about the conservation and nature programs at Grand Teton National Park."
— Kate Moore [71:42]
10. Conclusion
The conversation concludes with Kate reflecting on the art and science of investing, acknowledging the complexities and uncertainties inherent in the financial markets. Her holistic approach, blending macroeconomic insights with thematic strategies and behavioral understanding, positions her as a forward-thinking leader in wealth management.
Quote:
"True investing is both art and science... because I'm constantly intellectually challenged to not get frustrated if a model doesn't work out."
— Kate Moore [75:54]
Key Takeaways:
- Interdisciplinary Approach: Combining insights from various fields enhances investment strategies.
- Thematic and Macro Investing: Understanding long-term themes and macroeconomic indicators is crucial.
- Adaptability: Flexibility and continuous learning are essential in a rapidly changing financial landscape.
- Behavioral Insights: Recognizing and mitigating cognitive biases can lead to more informed investment decisions.
- Generational Shifts: Future wealth management will increasingly focus on ESG and mission-aligned investments.
Kate Moore's expertise and strategic vision offer valuable lessons for investors and professionals navigating the complexities of modern financial markets.