Active Asset Management - The Evolution of Active Management

4min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Active management has been a tough road to have any consistent outperformance of a market benchmark or whatever your target is through time. The essential element when Jack Bogel, he introduced this concept that you want to pay the least amount of beta that you possibly can. When we looked at how do we find an information edge, the obvious place was artificial intelligence.

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