The regulations are constantly changing in the chinese stock market. China has a perfect combination of things to generate alpha, a ton of data and alarge segment of investors who are not fully or aptmly utilizing that data. If all goes well, eventually the market will become efficient and 90 % of active managers will under perform,. Then we'll pack our bags and tell everyone to buy a catwith index fun. But we're probably a few decades away from that.
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.