Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications

Roundtable: (Big) data, AI to create next generation of systematic investment strategies, but human market 'interference' still a challenge

 

Sign up here for our free Roundtable Scripts - get this unique intelligence by email as Opalesque publishes them:

The Massachusetts Pension Retirement Investment Management (MassPRIM) has mandated Paris-based NewAlpha to identify newer managers and build a global emerging hedge fund managers program. Also apart from this mandate, NewAlpha sees a growing demand for differentiated and creative investment managers, more for quantitative strategies than for traditional, discretionary strategies. At the same time, interest for risk premia strategies seems slowing down, particularly from large European allocators like insurance companies for two distinct reasons (page 6).

This Roundtable also discusses the advances in artificial intelligence, machine learning and alternative data. Machine learning is presented as an exoskeleton that is very powerful to supplement people with some experience in the market in their decision making. The deeper challenge is however that markets are driven by people, and as they're driven by people, there are very few laws of nature. Prices in the market do not correspond to some sort of systematic measurement in physics but rather to the aggregate view of individuals.

In this context, information and data on their own may not be fully interesting, but how the information is absorbed and understood by market participants is what matters. The human brain of people shifting attention from one area to another creates additional complexity which interferes with prediction models. Still, some believe that (big) data combined with AI will lead us to the next generation of systematic investment strategies (page 11).

The Opalesque 2018 France Roundtable, sponsored by Eurex, took place in Paris with:

  1. Vanessa Casano, Deputy Head Asset Management Regulation Division, Autorité des Marchés Financiers (AMF)
  2. Arnaud de Servigny, Founding Partner, Bramham Gardens
  3. Christophe Roehri, Deputy CEO, TOBAM
  4. Nicolas Gaussel, Founding Partner & CEO, Metori Capital Management
  5. Nicolas von Kageneck, Senior Vice President, Eurex/Deutsche Börse Group
  6. Philippe Paquet, Managing Partner, NewAlpha Asset Management.
  7. Thanh-Long Huynh, CEO, HTL Capital Management
The group also discussed:
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1