Tue, Jul 16, 2019
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. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from