“There's gonna be a lot of alpha. This is a stock pickers market. This is not a market just to own the index and go to sleep.”
Gerstner says tariffs and AI create diverging company outcomes requiring active stock picking over index investing.
“So active managers get paid right now to do their job, find those companies that are gonna benefit, and avoid the companies that are gonna get hurt.”
Gerstner says Meta is not a market leader in AI today but remains a huge AI beneficiary.
“But the fact of the matter is they're not market leaders today in AI. They're huge beneficiaries from AI. We think the company is going to continue to do well.”