Is Machine Learning for Asset Managers a Need to Have?

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The hurdle that I really thought hard to reframe for people was the why. So we've built a pretty elaborate analytics system that we feed all of our strategies into so that we can put it in an investment framework and help people understand at least the typical metrics. They don't necessarily look the same because we don't use leverage. We're not large enough yet to take that kind of risk. If a particular client wanted it, that would be fine. But if you think about a lot of the returns that are generated by CTA's, there's leverage that it's being employed to amplify certain bets that they're taking. There's no window dressing around it. And so one of

Julia is the co-founder of Rosetta Analytics Inc, “an alternative asset manager that is pioneering the use of advanced artificial intelligence to build and actively manage liquid investment strategies.” Prior to co-founding Rosetta, Julia served as President of Wilshire Consulting and was a member of Wilshire’s Board of Directors and Consulting Investment Committee. Julia joins the show to take a deep dive into deep reinforcement learning and Rosetta’s pioneering work using AI as the basis of its investment strategies. Important Links:

Show Notes:

Julia’s journey from Wilshire to Rosetta
Defining deep reinforcement learning
AI and non-linear thinking
Using adaptive models
Overcoming the human need for ‘why’
Pitching deep reinforcement learning models to new investors
Telling positive stories about AI; improving our discourse
“Wake up and look for the joy”; “overcoming fear is the biggest barrier to success”

Books Mentioned:

What Works on Wall Street: A Guide to the Best-Performing Investment Strategies of All Time; by Jim O’Shaughnessy
The Beginning of Infinity: Explanations That Transform the World; by David Deutsch
The Fourth Turning: An American Prophecy - What the Cycles of History Tell Us About America's Next Rendezvous with Destiny; by William Strauss and Neil Howe