Clayton Gillespie - A Fundamental View of Quant Equity (S7E5)

In this episode of "Flirting with Models," Corey Hoffstein interviews Clayton Gillespie, VP at Deutsche Bank, about incorporating fundamental analysis into quantitative equity strategies. Clayton shares his background in fundamental equity research and how it informs his current work in quant equity. The conversation explores the friction between quant and fundamental viewpoints, using examples like Amazon's profitability and Fama-French's value premium. They discuss how fundamental insights can help identify emergent risk factors during regime changes, such as during COVID-19, and how to avoid biases when incorporating analyst insights into quantitative models. Clayton emphasizes the importance of understanding the "why" behind statistical correlations and the value of combining both fundamental and statistical approaches to improve alpha signals and manage risk effectively.