Sat, Oct 24, 2020
A A A
Welcome Guest
Free Trial RSS
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:
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. PE/VC: Coronavirus triggers borrowing spree by private equity managers, Venture capital investments reach new high in Brazil, Private-equity giants are racing to sell assets before year-end[more]

    Coronavirus triggers borrowing spree by private equity managers From FT: Private equity managers are turning to specialist borrowing facilities to ensure their highly leveraged strategies can survive the coronavirus pandemic, but there are growing concerns that the use of these complex f

  2. What's behind Viking's strong gains[more]

    From Institutional Investor: Viking Global Investors had strong performance in its three main funds in the third quarter, bringing gains for the year into the mid-to-upper teens. The Tiger Cub hedge fund firm, co-founded by O. Andreas Halvorsen, is far outperforming the broad-market averages a

  3. PE/VC: A record number of private equity funds are in the market - but closing them won't be easy, PE firms must be prepared to face challenges across each fund vintage, Wall Street is helping private equity recycle its old assets[more]

    A record number of private equity funds are in the market - but closing them won't be easy From Institutional Investor: Although there are a record number of private equity funds in the market, they are raising money at a slower pace, delaying fund closes, according to new data from Pre

  4. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol

  5. Opalesque Exclusive: A.W. Jones emerging manager fund of funds passes three year milestone, up +12.61% through August[more]

    Bailey McCann, Opalesque New York for New Managers: An emerging manager fund of funds from A.W. Jones has just passed its three-year milestone and is outperforming so far this year. The fund was up 3.29% in August a