In china, the government is trying to reform soes and make them more efficiant. We have ssoe classification as a prmee in our expected return model. But if we believe the reforms would be successful, we should remove that verb. And for what it's worth, we haven't decided what to but the key here is we need to act before the regime has shifted or soon after.
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.