A high a h premium does not bode well for the ashare, because that means hong kong investors think that stock is overpricd. Some stocks like the chinese fashion company la chapelle are four point five times more expensive than their eight share counterparts. If you overweight a low age premium stock underweight high age greomin stocks, you can earn a point eight, nine information ratio from that alon. We have an entire team in china driving any signals about what's so nice about china as there is so much data to study. By the way, one last singers, I am not the driver of china signals - i don't want to
Vivek Viswanathan is the Head of Research at Rayliant Global, a quantitative asset manager focused on generating alpha from investing in China and other inefficient emerging markets.
Our conversation circles around three primary topics. The first is the features that make China a particularly attractive market for quantitative investing and some of the challenges that accompany it. The second is Vish’s transition from a factor-based perspective to an unconstrained, characteristic-driven one. Finally, the critical role that machine learning plays in managing a characteristic-driven portfolio.
And at the end of the conversation we are left with a full picture of what it takes to be a successful, quantitative investor in China.
I hope you enjoy my conversation with Vivek Viswanathan.