Macro Hive Conversations With Bilal Hafeez Ep. 323: Jonathan Xiong on China, Dollar and Using AI in Asset Management
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Aug 28, 2025 In this discussion, Jonathan Xiong, Founder and CEO of Arrowpoint Investment Partners, shares his journey from law to finance. He dives into investment philosophies, highlighting the blend of quantitative methods and the importance of localized expertise. The conversation also explores AI's role in asset management, noting its efficiency benefits versus challenges for larger funds. Jonathan offers insights on Asia's investment landscape, emphasizing unique opportunities amid geopolitical tensions and the need for stability. Graduates receive advice on thriving in an AI-driven job market.
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Early Path Into Investing
- Jonathan describes his early path into finance, starting with a gifted IBM share from his father and shifting from a law interest to markets.
- He explains he accidentally fell into the buy-side because of geography and an interest in investing rather than sell-side work.
Quant Process Meets Discretionary Trading
- Jonathan frames investing through a process-oriented quantitative lens informed by historical research and discretionary trading experience.
- He stresses distinguishing true alpha from risk premia when designing strategies and evaluating PMs.
Commoditization Narrows Manager Dispersion
- Jonathan observes shrinking performance dispersion among PMs as alpha commoditizes and managers herd to peer-like returns.
- He argues career and classification incentives reduce willingness to take large, idiosyncratic bets that would widen dispersion.