Market Matters | Data Assets & Alpha Group: Harnessing Equity Alphas, with Jupiter’s Head of Systematic Equities (Part 1)
May 28, 2024
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Guests Dr Amadeo Alentorn and Eloise Goulder discuss the evolution of systematic equity investing, the intersection of finance with data science techniques, and the role of AI in the investment process. They explore stock selection, factor timing for alpha generation, and the application of machine learning in stock picking. Part one ends with a hint at exploring the competitive landscape of systematic investing in part two.
AI can face challenges in stock picking due to market noise, emphasizing the complexity of financial markets.
Systematic investing evaluates 7,000 stocks daily using a data-driven, multifactor model to achieve equity market neutrality.
Deep dives
Insight on AI in Stock Picking
The podcast discusses the skepticism around AI for stock picking, highlighting the challenges of navigating financial markets due to the abundance of noise. While AI has shown benefits in creative industries, the podcast emphasizes the complexity in financial markets where sentiment-driven noise can impact stock prices significantly.
Amadeo Alentorn's Career Journey
Amadeo Alentorn shares his career journey, transitioning from robotics to software development, artificial intelligence, and ultimately to computational finance. His expertise lies in applying computational methods to financial applications, specializing in option pricing using extreme value theory distributions.
Systematic Equities and Data Analysis
The podcast delves into the systematic approach to investing, highlighting the data-driven, multifactor model used to evaluate 7,000 stocks daily. By leveraging a wide range of factors, from traditional fundamentals to short-term sentiment indicators, the strategy aims to systematically build portfolios and achieve equity market neutrality, reducing market direction risk.
In this episode we hear from Dr Amadeo Alentorn, Head of Systematic Equities at Jupiter Asset Management. In Part 1 Amadeo discusses the evolution of systematic equity investing over the last 20 years, the intersection of harnessing fundamental finance with data science techniques, and the evolution of data and compute methods (including use of AI) in the investment process. Amadeo is in discussion with Eloise Goulder, Head of the Data Assets & Alpha Group at JP Morgan.
The views expressed in this podcast may not necessarily reflect the views of J.P. Morgan Chase & Co and its affiliates (together “J.P. Morgan”), they are not the product of J.P. Morgan’s Research Department and do not constitute a recommendation, advice, or an offer or a solicitation to buy or sell any security or financial instrument. This podcast is intended for institutional and professional investors only and is not intended for retail investor use, it is provided for information purposes only. Referenced products and services in this podcast may not be suitable for you and may not be available in all jurisdictions. J.P. Morgan may make markets and trade as principal in securities and other asset classes and financial products that may have been discussed. For additional disclaimers and regulatory disclosures, please visit: www.jpmorgan.com/disclosures/salesandtradingdisclaimer. For the avoidance of doubt, opinions expressed by any external speakers are the personal views of those speakers and do not represent the views of J.P. Morgan.
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