This podcast episode discusses the future of investing, the impact of technology on industries and investment strategies, and the use of alternative data and machine learning to improve investment decisions. Experts share their insights on how data-driven investing will become more prominent, the role of fundamental information in asset pricing, and the challenges of using alternative data. They also explore the potential of AI and data-driven strategies in investment analysis and the impact of technology on the asset management industry.
Takeaways
• Data-driven investing will become more prominent than the original quant revolution, combining the alpha of discretionary investors with the leverage of quants.
• Technology is changing the way businesses operate and how investment decisions are made, leading to more short-termism in the market.
• Alternative data can be used to gain insights into consumer behavior, company operations, and industry trends, improving investment decisions.
• A three-box process for using alternative data to make investment decisions: "Screen", "Evaluate", and "Monitor".
• Technology is expected to have a significant impact on the asset management industry, requiring firms to adapt to survive.
