Michael Robbins: Don’t Trust a Quant Unless…
In this conversation, we delve into the world of quantitative investing, exploring its intricacies, misconceptions, and the common mistakes people make when trying to apply it. The discussion also sheds light on the importance of asking the right questions and setting up the problem correctly in quant investing.
Topics Discussed
• The common misconception that a single tool or program can solve all problems in quant investing
• The importance of setting up the problem correctly and asking the right questions in quant investing
• The challenges of communicating complex quant concepts to laypeople or investment professionals without a background in quantitative methods
• The role of intuition and experience in quant investing and how they still hold significant value over calculations
• The use of quantitative methods in large institutions and the need for human supervision to prevent unusual or excessively risk-taking actions
• The impact of back testing and the importance of incorporating experience into it
• The discussion on whether machines can completely take over quant investing and the current limitations
• The exploration of arbitrage opportunities in quant investing and how they can be exploited by mid-sized banks
This conversation is a deep dive into the world of quant investing, offering valuable insights into its complexities, the common pitfalls, and the role of human intuition and experience. It's a must-listen for anyone interested in quantitative investing, providing strategies to navigate this complex field.
This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.
*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.
