We Study Billionaires - The Investor’s Podcast Network TIP407: The Evolution of Quant Investing w/ Jonathan Briggs, Ph.D.
Dec 24, 2021
Jonathan Briggs, CIO of Delphia and expert in quantitative investing, shares insights from his extensive research in the field. He discusses the basics of quant investing and the recent 'Quant Winter' phenomenon, where commoditization has impacted strategies. Briggs emphasizes the growing role of machine learning in developing investment techniques and critiques traditional approaches. With decades of experience, he introduces his economic framework, providing a fresh perspective on the interplay between data-driven strategies and market dynamics.
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First Finance Job
- Jonathan Briggs's first finance job was at Charles Schwab, where he helped build a robo-advisor.
- This early robo-advisor, though not initially successful, exposed Briggs to finance concepts like stocks and bonds.
Quant Factors
- Quant investing often uses factors like value, quality, and momentum to rank companies.
- These factors are created by ranking company characteristics and combining them into portfolios.
Smart Beta Commoditization
- Smart beta repackages traditional quant strategies, like value, quality, and momentum, for broader, cheaper access.
- This commoditization has impacted the perception of quant investing.
