Invest Like the Best with Patrick O'Shaughnessy Eric Sorensen - How Quant Evolves - [Invest Like the Best, EP.139]
Jul 23, 2019
In this conversation, Eric Sorensen, CEO of Panagora Asset Management and a veteran of quantitative research, shares insights drawn from his diverse background, including a stint as a fighter pilot. He discusses the evolution of quantitative equity research and its increasing significance in financial markets. Eric also delves into the role of natural language processing in finance and the importance of creativity and innovation in research. Additionally, he highlights how risk premia impacts investment strategies and the necessity of adapting to a rapidly changing landscape.
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Air Force Experience
- Eric Sorensen joined the Air Force ROTC while at University of Oregon, partly due to the Vietnam War.
- He served as an instructor pilot for high-performance jets, an experience that shaped his approach to managing and empowering individuals.
Aircraft and Finance Analogy
- Sorensen compares high-performance aircraft to the world of finance, both involving complex machines with human operators.
- He highlights the combination of skill, decision-making, and adaptability required in both fields.
Early Quant Research
- Sorensen discusses early quantitative finance research, focusing on asset pricing equilibrium and competition.
- He explains how efficient market theories and empirical studies shaped early quantitative research.
