Discretionary investment managers are using an increasing number of quantitative techniques and technologies to enrich their fundamental decision making process with the vast amount of data that is available nowadays. In this talk, I will outline the motivation behind such "quantamental" investment approaches (where fundamental and quantitative meet), how we at Man Group think about this topic, and the lessons learned on how to implement "quantamental" efficiently.
Computers and quantitative techniques are challenged in domains of changing assumptions or dynamic underlying models. Human intuition fails us in domains with infrequent tasks, no feedback loops, and tasks that are probabilistic in nature. Using "quantamental" approaches, the latest trendy buzzword in the investment management space, investment managers try to overcome these problems at the intersection between quant and fundamental research. Analysts and portfolio managers are trained in Python and given tools to quickly make sense of the ever more complex world of financial data to ultimately become the investment professionals of the future.
What you'll learn in this talk:
• What does it mean to implement a quantamental investment approach
• Why do we still need humans in finance, can't it all be automated?
• What biases and cognitive blockers prevent humans from making the "right" decision in financial markets?
• What are the keys to success in implementing quantamental at your discretionary investment manager
• What are we at Man Group doing to bring quantamental approaches to life?