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Making Sense

Market Matters | Data Assets & Alpha Group: Harnessing Equity Alphas, with Jupiter’s Head of Systematic Equities (Part 1)​

May 28, 2024
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.
28:05

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Quick takeaways

  • 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.

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